SmileDirectClub, Inc. operates a teledentistry platform that provides members with a customized clear aligner therapy treatment in the United States and internationally. The company manages the end-to-end process, which includes marketing, aligner manufacturing, fulfillment, treatment by a doctor, and monitoring through completion of their treatment proprietary with a network of approximately 240 state-licensed orthodontists and general dentists through its teledentistry platform, SmileCheck. It offers aligners, impression kits, whitening gels, and retainers. The company was founded in 2014 and is headquartered in Nashville, Tennessee. It seems like the future of orthodontist treatment, and an opportunity to buy an excellent company. Anyone invested in SDC or know any value-added info...
Will they survive the regulatory environment? Dentists have strong political skills and contribute generously to politicians. Of course, politicians act in the public interest and don't favor narrow interests because of their monetary contributions.
It seems traditional Dentists are afraid of the competition more than anything. If you look at their revenue growth over the past 3 years... $682,218ml - 2019 $423,234ml - 2018 $145,954ml -2017 Looks good to me, plus it saleable and scalable on an international level.
Listen to the conference call, lots of insight on the previous fights with state dental boards. Something about 30 state dental board inquiries and no issues. Anecdotally, I know more than a few people who have used their product have had good results. One wasn't completely happy and had a refinement (free) and he is waiting on those to show up. The CEO on the CC touches on having production issues. Telemedicine is the future and a great way to reduce costs. Go read some of the state laws that SDC is having issues with. They are preposterous, like requiring a doctor just to be in the building while an x-ray is being taken.
Hindenburg Research has a quality report on SDC. It seems they've made an excellent point for shorting the stock. But the fact remains did the underwriters overvalue the IPO. Another question is why did insiders sell a large sum of shares on the IPO? down almost 70 percent from its IPO price, should be an interesting Q. Does anyone know what a good price would be to buy the stock/valuation? Technicals look awful, trending down. I guess its a case of good company bad stock...
"SmileDirectClub: Moving Fast and Breaking Things in People’s Mouths – 85% Downside" https://hindenburgresearch.com/smiledirectclub-moving-fast-and-breaking-things-in-peoples-mouths/ Published on October 4, 2019 .