Candela Corporation (NASDAQ–CLZR)

Candela Corporation, (NASDAQ–CLZR)
Valuation-$11.51
Price August 30, 2007-$7.26

This one continues to fall despite an FDA product approval this week and a share buy-back recently announced. Trading at just over 1 times annual sales.

With $2.10 a share in cash (29% of the market cap), 50% margins, a recent FDA approval, a 2.3 million share buy-back, we think this is a good bet for a turnaround.

The daily trading volume has been nearly 236,000 shares.

We think anything under $7.30 is a good price.

CLZR is trading at 63% of our valuation. Pretty cheap for a “medical” company.

About Candela:
Candela Corporation manufactures, and distributes innovative clinical solutions that enable physicians, surgeons, and personal care practitioners to treat selected cosmetic and medical conditions using lasers, aesthetic laser systems, and other advanced technologies. Founded near Boston in 1970, the company markets and services its products in over 70 countries from offices and distributors in the United States, Europe, Japan, China and other Asian locations. Candela established the aesthetic laser market 18 years ago, and currently has an installed base of an estimated 10,000 lasers worldwide. Visit Candela on the Web at http://www.candelalaser.com.

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