#8 - SmileDirectClub (NASDAQ:SDC)
The promise of SmileDirectClub (NASDAQ:SDC) is easy enough to understand. One of the problems for the stock has been that the procedure can be expensive and was not covered by many health insurance companies. But that narrative is changing. SmileDirectClub recently announced an agreement with Anthem (NYSE:ANTM) who will now provide in-network insurance.
This adds to the previous agreements the company has reached with UnitedHealth Group and Aetna. CEO David Katzman cites the adoption of telehealth as a key reason for the company’s opportunity. Said Katzman, the agreement with the U.S. insurance providers confirms that “consumers expect a solution that allows them to receive care using remote technology that protects their health and safety.”
It’s a big if, but if one of the results of the Covid-19 pandemic is that consumers opt toward SmileDirectClub’s business model which allows patients to get their aligners without having to visit a dentist or orthodontist, then the stock may have plenty of room to run.
About SmileDirectClub
SmileDirectClub, Inc, an oral care company, offers clear aligner therapy treatment. The company manages the end-to-end process, which include marketing, aligner manufacturing, fulfillment, treatment by a customer's dentist or orthodontist, and facilitating remote clinical monitoring through a network of orthodontists and general dentists through its proprietary teledentistry platform, SmileCheck in the United States, Puerto Rico, Canada, Australia, the United Kingdom, New Zealand, Ireland, Hong Kong, Germany, Singapore, France, Spain, and Austria.
Read More - Current Price
- $0.00
- Consensus Rating
- N/A
- Ratings Breakdown
- 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
One of the problems with investing in inexpensive stocks is the belief that a stock that a high price means a stock is good, and a low price means that a stock is bad. That can be true, but experienced investors understand that a stock’s price and its value are very different things.
A stock that trades at $150 could decline by 25% and investors will herald it as being “on sale”. However, when the same price movement occurs on a stock that is $10 or less, the stock can be seen as untouchable. But stocks move for a variety of reasons. And at times like this, when a black swan event dominates the news, good stocks can get punished simply because investors are trading on the news.
But rather than scare you away from buying low priced stocks, this is just a reminder to do your homework. The companies listed in this presentation have catalysts that may allow the stocks to move up significantly as the economy continues to re-open.
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