Savvy Trades and Investments

[SSKILLZ1]

INMD

I just initiated a decent position yesterday at $33.99, so I did join you here. It has had a nice pullback to buyback into it. It possibly Could fall to the next Support level around $31-32, but I would add more if that happens.

1) INMD Guided for $2.62-2.66 last quarter which was up from $2.58 to $2.60. I believe earnings will be closer to $3 this year when all said and done for this FY, and probably closer to $3.50 next year. Hence I think analyst estimates are waaaaaaaaaaaaaaay too low. Time will tell on that. But I'm a believer this company at minimum derserves 15 multiple, could make a case for 20 which would be a market multiple essentally considering it's growth, but If I'm correct and they earn around $3.50 next year, I could easily see this stock trade back into the mid 50's very easily.

2) INMD is a great growth story, look at the revenue growth, that is a huge positive trend.
FY 23 Guiding for 530-540 million
FY 22 454,271,000
FY 21 357,565,000
FY 20 206,107,000
FY 19 156,351,000
FY 18 100,162,000

3) INMD also has a healthy balance sheet with roughly over $7 in cash on the balance sheet. Although I would like they would do something with it, like start a dividend, or buyback shares down here. But I rather have a healthy balance sheet, than not have one.

Conclusion: I like INMD a lot and think it is very undervalued and one of the most reasonably priced strong growth stories out there. Of course I will add more on weakness. All is just my opinion, and I could always be wrong though.