You’re the best Sven, thanks for the laughs! 😂 I’ve looked at Inmode before and it seemed too good to be true. Thanks for all you do for this community.
Sven, you just eviscerated one of my favorite value plays. I will heed your warnings and watch for shenanigans. Dilution was my primary concern when I bought.
About the cash, perhaps an acquisition? Could you get into more detail as to what the downfalls of these other medical companies you alluded to and how you see it being similar with INMD? While I think its good to be a skeptic for individual stocks, I didn't see any substance in the argument.
Thank you for analyzing the company I mentioned :).I found this one for quite a while ago,and some metrics look good,so I researched it some more,the reason why the growing company with high margin was out of favor. I read some reviews about user's experience,and it was mixed....I was kind of looking for another perspective into this one. Thanks again
I came across a fat farm hospital stock in the US a few years ago and thought I could not miss with it. It had everything and Americans were really starting to get huge. I lost in the end. There was shinanigans with the accounting and the auditor would not sign off on the books. I agree with you that these kinds of companies are dangerous to my financial health. Good call.
I started a small position below $23, wanted to build heavy below $20. If there are management schnanigans, I am not able to see them from my research, maybe some one else can help. What I do see is this: Even thought they had stellar growth, its not a Saas reoccurring revenue model, the more they sell their machines, the lesser the TAM becomes, especially in recession high interest environment, as they are in elective surgery market which people tend to postpone during bad times. They do sell consumables for their machines which is reoccurring, but thats a small portion of the revenue
So your thesis is that, notwithstanding the relatively attractive valuation considering the fundamentals (including their most recent upside guidance to revenue, net income and free cash flow), you are likely to get screwed because (a) they are not declaring dividends and (b) their lean salesforce suggests that they might not be able to continue securing higher sales. Time will tell whether you are correct!
I have used INMODE products and they are really effective for skin texture issues but the problem is the company and providers market as a replacement for a face-lift and that is just not the case. Overuse of these types of heat products I feel will start showing downfalls in a few years down the road but as you point out, the management has kept all the IPO profits and will just move on to a new product or technology at that point. Not much value for investors. Thank you for this video Sven!
You never want a face-lift period. If anything, this is far superior than a face-lift. A face lift stretches your skin unnaturally whereas these procedures prompts your body to renew itself. This is like comparing fasting to lose weight vs. lipo-suction. Obviously, you want to do it naturally by fasting, and working out.
My biggest position in my portfolio, already did well, but I do have high hopes. My 2 cents - They sale it to plastic surgeons , not to end clients. This replaces surgical procedures with non invasive procedures, they don't scheme patients, and if surgeons keep buying more solutions from them (which occurs) than it gives you an hint that this brings them value. The products are assembled in two factories in Israel and not in China, where probably some of the parts may come from. Its common in Israel not to go to the local stock market but sign in the states, not something odd. If recession hit, they won't be able to maintain this growth clearly , but with this cash and no debt, they can probably survive a recession. I too also worry about the cash accumulating, unclear at the moment what are their plans for the money. Another important thing to note about INMODE - they didn't pay taxes, from this year they wills start to pay taxes (a rate of 10% btw)
Facilities in Israel were granted Benefited Enterprise status and thereunder the company enjoyed a ten-year tax exemption from corporate tax on undistributed income derived from the Benefited Enterprise. The first year in which INMD were exempted from tax was 2012 and the ten-year eligibility period of tax exemption ended in 2021. 2022 Q1 have been already taxed. INMD delivered record Q1 2022.
They do RF and mirconeedling. There's tons of those products on the market. What seems interesting is that they are doing a really good job in selling their products to clinicians. Perhaps, it's ease of use? I have no idea. But the products do work base on the science, that is why the doctors are buying them.
Looked at this company a while ago too, the management team might look good on paper but once you dig deeper, you either find nothing or some shady pump and dump schemes in the past, also the papers and research all point to a single cosmetic treatment facility in New York without much else, also very small moat even if everything is legit.
Hi Sven, could you take a look at the finnish tire-manufacturer Nokian Tyres? They had 80% of their production in Russia, and since february their stock price has crashed 70%. They are now trading at P/E - ratio of 7 (TTM) and dividend yield of 5%, but this is after having cut their dividend in half in march to invest in new production facilites. Historically they have been a stable (boring) business, so I think this might be a good opportunity. It would be great to hear what you think, and by the way, thanks for amazing content!
Hey Sven! Thank you for the Insight! Would you take a look at the Liberty Media Group (LSXMA) ? I've been observing this stock for half a year now, watching it decline around -30%. I think it could be an interesting play because they own Pandora, the streaming platform and the rights to formula 1, which is expanding rapidly (especially in the US) and is one of the most watched TV events. Berkshire Hathaway owns approx. 20% (according to business insider). PE looks also alright at around 15. Greeting from Austria with all the Scheiße going on here ;)
Hi Sven, I think that the companies which in different form are selling products that are helping in the fight against obesity have good growth ahead. This being said I am wondering what is your opinion about Medifast (MED) stock ?
That’s what makes the market. I won’t sell my position. I’ve taken off some profits already after all but Definitely don’t have the confidence to average up.
Hello Sven, what about HALEON, the consumer product branch of GSK, very recently spun off? The portfolio of brands and products is first class, but I'm afraid - as we've seen with WBD and Kyndryl - non dividend investors will sell, and the price will tank (actually, more than afraid, I'm hopeful it goes this way 😁). Do you see value in it?
Hi Sven, could you please elaborate more on how Inmode is very similar to previous shenanigans and how these factors would screw us up? And the company has no debt with a lot of cash and cash equivalent. With high margin and high net cash level, doesn't it imply that it is less likely for Inmode to go bankrupt in the near future? Or Does the management's unwillingness to return its cash to Shareholders (e.g. paying dividends) imply something bad behind the scene? It would be nice if you could elaborate your viewpoint on these. Thanks for the great content :)
He does not like the company at all so he didn't spent too much time on looking into it. He just made some sarcastic remarks, presented wrong data and was done with it. Just forget that you saw this video.
I think the way this company presented themselves raised some flag for sven. The way they market with a tiny team of 35 RD with 8-10 patents, showing pic of actress using, showing fat loss tricks like millions of other fat loss tricks such as liquid nitrogen and fat belts, plus they aren’t returning money to shareholder through buy backs and dividends so already that doesn’t see like a value company, at least not in the traditional sense. Plus this company is not based in USA but then they IPO in us stock only so their main purpose is to get your money, and not to provide value or products.
@@slimjimjimslim5923 Thank you for your explanation. I would like to clarify one thing though, which is that the company is based in Israel and it has enjoyed Israel's tax benefits as a result (therefore not a China based Company). Not sure if it makes a difference but it's something worth mentioning.
@@slimjimjimslim5923 Where are you getting your facts from??? You can argue for Izreal/Us but not for China. They are providing products. I dont know what is "value company in the traditional sence" in your world. Value investing - that's something different and there was no attempt to calculate intrinsic value of this company whatsoever.
Sven, curious to hear any of your new thoughts on Intel INTC after the earnings call. This is one of the stocks you talk about here on TH-cam. The market is dumping the stock after 22% decline YoY…. Now in the mid $30s with a stable dividend yield but a ton of uncertainty. Would you give us a Sven Carlin update on Sven’s THOUGHTS on Intel? After Q2 earnings call, does INTC still fit you? Thank you…
So your main concerns are huge cash position in balance and high p/s even with good p/e? Do you invest in growth companies or value present only in shity ones?
any updates? looks like revenue is indeed down significantly from last review looks much cheaper now but not sure if any more upside or the underlying business changed...
the company has been ipo for 3 years already, when the stock was around $100 last year nobody put a video questioning its credibility. now stock dropped by 70% from its high and the valuation gets attractive people starting saying “this is too good to be true, this must be a fraud” 🤣🤣🤣 🤣🤣
Totally agree with you, and some people you can beat over the head, with a great deal, and even if their research says it's OK, they still do nothing. No wonder most investors don't make money, and are broke.
Thank you Sven. Again a very interesting analysis. Could you have a look at Schneider Electric. It's a world leader in energy management systems and automation. Looks like a decent business in my opinion.
Hi Sven. Thank you for the nice insights. You talked us about the inelastic market hypothesis in relation with the buy backs of a company. I would like to know how this theory can be applied to "VERA BRADLEY (VRA)". The company declared in December 2021 a 50 million buy back program that expires in December 2024. They have no debt and a cash position of 63 million. they have already spent 15 Million dollars in buy backs at an average price of 7.35$ in Q1 2022 (page 18 of the 10Q). The price per share at this time is 4.53. Do you think, it makes sense to buy this company, given the fact that they lost money (7 Mio.) in the Q1 2022 and could lost more money in the upcoming quarters. My question is: Why should I not buy this company? Thank you for taking the time
Sven it seems bank stock are doing really well. For instance City (C) is sitting at 6.2 P/E ratio with tail wind of increasing interest rate and 4.14 dividends.. why dont you do City stock review? Also MRNA sitting at only 4.14 PE ratio and it has huge potential as we are still under COVID... i dont even understand why those stocks are so cheap !!
Thought the same about Inmode a few months ago. I liked Huntsman (HUN) more at the time. Understood more the business and I have more confidence on the growth potentiel of that business.
They don't return any value to shareholders lately the free cash flow is rising their expenditures are low ,but they keep diluted shares and they didn't acquire anything lately
I had to watch this video twice. I do like my stocks the way I like panties. Thanks for teaching us that not all that glistens is gold. Sometimes a stock deserves to be gold. I never considered your angle.
Yes, I completely agree. It’s a very high risk company to invest in, and the company website and information has a slick sales pitch feel about it that makes me think of the saying “it’s too good to be true“. the money we save to invest is perhaps not vital for our every day expenses but it’s still very hard to save, And we have a responsibility to ourselves to invest wisely.
Stock is up 40% since you made this comment. This company is very low risk. High, growth, lots of cash 400m, no debt, huge margins and company buying back shares. They just increased guidance and you decide that a cloud TH-camr can look at a stock and give you a proper update on that stock. This guy knows very little about this company and if you listen to con artists like this you will miss out on great opportunities in the market.
Interesting perspective. I almost pulled the trigger on this one a few months ago, but decided not to. I'm curious, Sven, when is hoarding cash okay for a company? Is a company that hoards cash but pays a small dividend ok (IBA for example, 50% MC value in cash, but 2.25% dividend)? Or do you expect them to do more for shareholders?
I don't think it's purely about hoarding cash (look at Google for instance and it has a ton of cash BUT its share count has NOT been skyrocketing like this company, it's all about capital allocation). The problem with this company is that it's been issuing stocks to compensate employees and executives but at the same time, it HAS NOT been buying back that same amount of shares to offset dilution, so the question is what are they going to do with all that cash?
I didnt really understand why you say this stock is no good. Can you elaborate? Is it simply in your opinion too good to be true? Or are their products scam in your opinion? Not exactly sure what your thoughts are after watching this. Thank you!
From my understand of the video: They make money and don't give back value to shareholders. Not through dividends, not through buybacks (they're actually diluting shareholders), and not through acquisitions. Which begs the question, why are they hoarding money, for what? for themselves?
Hey Sven, would you please take a look at Douglas Elliman? It's a real estate broker (mostly luxury), 3.6% dividend yield, 9.42 P/E, OK balance sheet. It was spun off from Vector (tobacco company) at the end of last December and has been in a free-fall since (56%) because of the overall negative outlook of the housing sector + also some selling pressure from Vector shareholder's. I think all these make it value stock.
U only one saying something negative abt it I loved ur honest opnion especially accompied with ur exp. Another thing people not Talk abt is it's future, its runaway. Since its a fixed cost business not a saas kind with recurring expenses what will they do when they sell it to all there prospective clients?
Great video as usual! Since you analyze a lot of companies, when you come across companies that are very overvalued do you consider shorting them? As a value investor, I'd love to hear your opinion on shorting stocks and what criteria you would use. I appreciate all your dedication to the education you provide us.
He normally doesn't short because the risk/ reward is pretty bad: you can gain up to 100% but lose everything. The market can stay irrational for longer than you are able to stay solvent. He also made a Video about it.
@@bastikl.3528 Thanks for the feedback. I figured it wouldn't be a strategy he used often but figured with all the research he might find something that would be so clear that the risk/reward would be within his parameters. I'll try and look for the video. Thanks!
Hi Sven, can you make an analysis on Alpek (ticket symbol ALPEKA) please?, it is a Mexican company of plastics/polymers production with plants in USA, Mexico, Latin America and UK that like Inmode "has everything" (at least financially, it is a boring company) , but they have been +10 years in the stock market and in the Mexican Stock exchange only, its FCF 5Y CAGR is 25% and it often pays dividend (current yield is 6.5%), some buybacks, coverable debt, etc.
I should note that while I understand the risks involved here all the research I've done with the product doctors who buy it are very happy with it. Are there issues sure but the product itself dominates a good niche and could easily be bought out of that's what it comes to
@@RanNaot I should note that while the business is mainly focused on plastic surgery they have also said they are expanding into ED and lasik. They essentially halted everything when they got a windfall from the pandemic. I think the cash pile is there to toughen our economic headwinds. Dispensing the cash wouldn't be wise
@@loganshearer7706 I bought a lot of share and some call options when it was at a price of 23 (waiting to buy puts to hedge my holding), so I am a holder. But like any company I own, I have my concerns, with INMODE its the cash, its not the first quarter that cash is piling, and its unclear where its is heading. I hope we will get clarification on the coming earning call, I am still bullish on the company, but also know that this is a very transit industry (the esthetic medical devices) so I want to be cautious.
I will just copy paste what I wrote on Daniel Pronk’s channel when he reviewed the company some days ago. Very sceptical with these types of companies. Too many red flags for me. 1. I cannot find what is so special about their technologies, there is competition in this sector and competitors seem to provide the same type of systems and services - flying through some of their FDA registration filings their systems seem to typically claim substantial equivalance to systems already on the market - no moat - which makes me wonder why their profit margins should be so much better than anybody elses? 2. management commitment - questioning commitment of their CEO and founder who sits in the boards of 14 other companies? That seems like a lot. Not sure about the CFO, who seemed to have done a lot of job hopping in the past. 3. if something is looking too good to be true - it usually isn‘t true. But will put in on my watchlist just to see how it will develop over time. I may be wrong with my concerns - but that‘s fine, I can live with a missed opportunity =).
There isn't anything special about their products. RF technology and microneedling have been around for years. Do an amazon search. The only thing that is special about it is that they are making devices that clinicians in the field like using. Right now, they are the go to name. I personally started buying it recently at around 22-24. Trimmed at 30, but will look to buy back some shares next week leading up to the FOMC meeting. This can potentially easily be back at $40 in the next month or two.
I have to agree with you, just looking at the website, it just screamed 'snake oil' product to me. That's not to say that snake oil doesn't sell, or can't make you money in the short term, but I would be very sceptical of this company as a long term hold. It reminds me of another company with a dubious product: Zynex. There I was lucky as I boarded the hype train at $28, but now it is at $8 or so.
A market cap of $2.37Billion and 35 people working in research. That's a value of $67 Million per researcher. When talking on health innovation, researcher quality and quantity is important. So if each researcher makes the company more than $67 million each, great. I doubt that.
Hi Sven, I suggest to have a look at Hellofresh. It is the only mealkit company actually turning a profit and being fcf positive. What's more it has come down due to inflationary worries and its peers posting bad news and bad results. Hellofresh has become the market leader in most of its market and now seems to have a moat in terms of infrastructure over its direct competitors. It's main selling proposition imo is saving mental and physical time, hence convenience. One of the main threats is customer churn. Another one is new entrants with logistic and marketing machines behind them. These threats are increasingly reducing as the come grows in absolute and relative size. I think the valuation is attractive at EV/EBITDA ratios hoovering around 10.
Before you even started commenting on the “red flag” in the second half of the video, I already have similar thoughts that the business is too good to be true! My first thought is how resilient will the business model prove to be in a recession or bad economic situations. I am glad we are like-minded. I learnt a lot from watching your videos and see you as a mentor. 😊
I've seen lots of posts on Reddit about awesomeness of InMode, but I'm yet to see anyone thinking of Theranos when they write those. Both companies specialized in magic...
I've had my eye on Inmode, and have been in and out of the stock over the the last 2 years. It has great growth, but slowing lately, but so have all economies, and their type of product gets put on hold when cash is tight. I think there's a huge market for the products they offer, as people always want to look better, especially women. The only thing that Sven points out as a red flag, is the amount of cash their holding, but I don't see it that way. Should they need cash, then they will have it, and not have to go to market and borrow at high rates. You do have to wonder why their diluting their shareholders tho, and issuing more shares, when they have all that cash ? I think this is a stock worth watching, as it come make some people extremely rich, but you never know for sure. From what I've seen so far, they look great.
They diluted shares up until 2019. 2020-present they have been buying back. I don’t know what Sven is talking about. They bought back 4 times shares vs sbc in the ttm.
Caution: InMode put devices on market that doesn’t have FDA approval. They won’t provide clinical studies. They ignore your concerns about the devices and won’t address your problems. I was told I could return the device I bought if it did give satisfactory results. That’s not the case. They want to get the device sold quickly and use loan sharks to over charge you and information about the loan. I would caution practitioners from buying from this company. I would advise patients to stay away from their body contouring device. In my practice I have started using it as a free treatment and still struggle getting people to use the device. If you try to sell the device you will get A fraction of what you paid. This company has very bad business ethics.
idk this medical company has like you said in your words comes off as scam. The website look and feel seems cheap too. idk getting weird vibes. I would like to see more of a third party medical analysis of their tech.
Haha I was watching this video expecting a great company. But as you showed what they did I was like... Come on Sven you are better than this. But then you made your point and I was glad haha. I don't agree with everything you say but I trust you on this one
Don't get how meaningful of a statement it is with growth is slowing when pointing out a Dec '21 vs TTM of Q1 '22 that still shows a increased income (with ~75% of data overlap); basically just looking at one quarter's change in net income; numbers look quite different comparing Q1 '22 vs. Q1 '21....products do look odd: but alternatives to that nonsurgical procedure well involves surgery/Anastasia--a good chunk of people would try something non-surgical first.
If you train a bit You may even reach level of deadpan sarcasm use by Patrick Boyle in his videos :) I like this one, adds something new. Anyway, If I was to propose small tech company to keep eye on, I would propose Vigo System S.A. from Warsaw Stock Exchange (VGO). World leader in producing uncooled infrared photon detectors, which is now ramping up production capabilities, so cut dividend and negative FCF thanks to capital expenditures like building new clean room.
I started following Inmode few weeks ago, I came to the same conclusions as you and I decided not to invest in it. This video just confirms my worries. Thank you Sven
8 patents ? That sounds like a start up in this sector. Patents run out, can be challenged etc. 8 Patents means they do not have that much products patented and they rely on very few products. That may be normal for a small company, but makes it risky. Usually for one product there are several patents.
Unity Software Inc ……value buy? Largest phone video game company, making moves to move to metaverse like many other tech companies, debt to market cap is pretty good, dropped significant in value during recession
Great video Sven! Agree with your views on the med company, the competitive landscape is really hard to predict. Especially if you are not working in it 😅
![โรงเรียนดัดสันดาน นักเรียนเถื่อน..!! [โรงเรียนไดเม่]](http://i.ytimg.com/vi/vRKPeXn4Fl4/mqdefault.jpg)
Thank you Sven for teaching us on how to look at the red flags on the company.
You’re the best Sven, thanks for the laughs! 😂
I’ve looked at Inmode before and it seemed too good to be true. Thanks for all you do for this community.
It took me a few minutes to understand this entire vid was sarcasm. 🤣
Thanks Sven for teaching how to look deeper into the business because sometimes the numbers are misleading
Sven, you just eviscerated one of my favorite value plays. I will heed your warnings and watch for shenanigans. Dilution was my primary concern when I bought.
About the cash, perhaps an acquisition? Could you get into more detail as to what the downfalls of these other medical companies you alluded to and how you see it being similar with INMD? While I think its good to be a skeptic for individual stocks, I didn't see any substance in the argument.
Inmode is looking strong into Akquisitions
0 substance, he looked at it 4 seconds and screamed at the cash position. LOL !
Thank you for analyzing the company I mentioned :).I found this one for quite a while ago,and some metrics look good,so I researched it some more,the reason why the growing company with high margin was out of favor.
I read some reviews about user's experience,and it was mixed....I was kind of looking for another perspective into this one.
Thanks again
Yeah, there are some terrible reviews on it, also lawsuits.
I came across a fat farm hospital stock in the US a few years ago and thought I could not miss with it. It had everything and Americans were really starting to get huge. I lost in the end. There was shinanigans with the accounting and the auditor would not sign off on the books. I agree with you that these kinds of companies are dangerous to my financial health. Good call.
Americans are still ballooning!! I’ll invest on the cause. That’s a sure thing!
I hope this video ages as well as your $BABA ones. But seriously thank you for your input.
Questa la scartiamo druze Sven, grazie per il servizio
I started a small position below $23, wanted to build heavy below $20. If there are management schnanigans, I am not able to see them from my research, maybe some one else can help. What I do see is this: Even thought they had stellar growth, its not a Saas reoccurring revenue model, the more they sell their machines, the lesser the TAM becomes, especially in recession high interest environment, as they are in elective surgery market which people tend to postpone during bad times. They do sell consumables for their machines which is reoccurring, but thats a small portion of the revenue
So your thesis is that, notwithstanding the relatively attractive valuation considering the fundamentals (including their most recent upside guidance to revenue, net income and free cash flow), you are likely to get screwed because (a) they are not declaring dividends and (b) their lean salesforce suggests that they might not be able to continue securing higher sales. Time will tell whether you are correct!
Thanks for the content! Can you do UBER, seeing as it posted FCF positive for the first time? Thanks!
I have used INMODE products and they are really effective for skin texture issues but the problem is the company and providers market as a replacement for a face-lift and that is just not the case. Overuse of these types of heat products I feel will start showing downfalls in a few years down the road but as you point out, the management has kept all the IPO profits and will just move on to a new product or technology at that point. Not much value for investors. Thank you for this video Sven!
You never want a face-lift period. If anything, this is far superior than a face-lift. A face lift stretches your skin unnaturally whereas these procedures prompts your body to renew itself. This is like comparing fasting to lose weight vs. lipo-suction. Obviously, you want to do it naturally by fasting, and working out.
My biggest position in my portfolio, already did well, but I do have high hopes.
My 2 cents - They sale it to plastic surgeons , not to end clients. This replaces surgical procedures with non invasive procedures, they don't scheme patients, and if surgeons keep buying more solutions from them (which occurs) than it gives you an hint that this brings them value.
The products are assembled in two factories in Israel and not in China, where probably some of the parts may come from.
Its common in Israel not to go to the local stock market but sign in the states, not something odd.
If recession hit, they won't be able to maintain this growth clearly , but with this cash and no debt, they can probably survive a recession.
I too also worry about the cash accumulating, unclear at the moment what are their plans for the money.
Another important thing to note about INMODE - they didn't pay taxes, from this year they wills start to pay taxes (a rate of 10% btw)
Facilities in Israel were granted Benefited Enterprise status and thereunder the company enjoyed a ten-year tax exemption from corporate tax on undistributed income derived from the Benefited Enterprise. The first year in which INMD were exempted from tax was 2012 and the ten-year eligibility period of tax exemption ended in 2021. 2022 Q1 have been already taxed. INMD delivered record Q1 2022.
They do RF and mirconeedling. There's tons of those products on the market. What seems interesting is that they are doing a really good job in selling their products to clinicians. Perhaps, it's ease of use? I have no idea. But the products do work base on the science, that is why the doctors are buying them.
Looked at this company a while ago too, the management team might look good on paper but once you dig deeper, you either find nothing or some shady pump and dump schemes in the past, also the papers and research all point to a single cosmetic treatment facility in New York without much else, also very small moat even if everything is legit.
Hi Sven, could you take a look at the finnish tire-manufacturer Nokian Tyres? They had 80% of their production in Russia, and since february their stock price has crashed 70%. They are now trading at P/E - ratio of 7 (TTM) and dividend yield of 5%, but this is after having cut their dividend in half in march to invest in new production facilites.
Historically they have been a stable (boring) business, so I think this might be a good opportunity. It would be great to hear what you think, and by the way, thanks for amazing content!
Any request for Tupperware? I only trust your expertise on stock 😃
Damodaran says there is an impossible triangle: high growth, low capex, low risk. When everything looks too perfect, it reminds me of theranos
Sven: maybe I’ll be wrong and people will tell me this video aged like milk
Reality: video aged like fine cheese
:-))))
Real estate companies have taken a tumble. Is it time to buy? Castellum AB (Stockholm)
Great risk analysis. Thanks for your input, Sven!
Hey Sven! Thank you for the Insight!
Would you take a look at the Liberty Media Group (LSXMA) ? I've been observing this stock for half a year now, watching it decline around -30%.
I think it could be an interesting play because they own Pandora, the streaming platform and the rights to formula 1, which is expanding rapidly (especially in the US) and is one of the most watched TV events. Berkshire Hathaway owns approx. 20% (according to business insider). PE looks also alright at around 15.
Greeting from Austria with all the Scheiße going on here ;)
Hi Sven, I think that the companies which in different form are selling products that are helping in the fight against obesity have good growth ahead. This being said I am wondering what is your opinion about Medifast (MED) stock ?
You may be very wrong on this one. I could be biased, since I like and own the company. Time will tell.
That’s what makes the market. I won’t sell my position. I’ve taken off some profits already after all but Definitely don’t have the confidence to average up.
i would love to see your video on ZIM - shipping company, very boring, very profitable, interesting moat.
thanks for suggesting!±
it's a bullshit company
Great entertainment value Sven. Thanks
Hello Sven, what about HALEON, the consumer product branch of GSK, very recently spun off? The portfolio of brands and products is first class, but I'm afraid - as we've seen with WBD and Kyndryl - non dividend investors will sell, and the price will tank (actually, more than afraid, I'm hopeful it goes this way 😁). Do you see value in it?
You are so right - “global cord blood it’s the same story. Shareholders never see money but the management gets bonuses or free shares
Hey Sven, I believe you analyzed Stanley Black & Decker recently, but I don't remember in which video... ?
One of the best videos by Sven!
:-)
Sven is so sarcastic and I love it.
Hi Sven, could you please elaborate more on how Inmode is very similar to previous shenanigans and how these factors would screw us up? And the company has no debt with a lot of cash and cash equivalent. With high margin and high net cash level, doesn't it imply that it is less likely for Inmode to go bankrupt in the near future? Or Does the management's unwillingness to return its cash to Shareholders (e.g. paying dividends) imply something bad behind the scene? It would be nice if you could elaborate your viewpoint on these. Thanks for the great content :)
He does not like the company at all so he didn't spent too much time on looking into it. He just made some sarcastic remarks, presented wrong data and was done with it. Just forget that you saw this video.
Nice, looking forward to the answers on your questions!
I think the way this company presented themselves raised some flag for sven. The way they market with a tiny team of 35 RD with 8-10 patents, showing pic of actress using, showing fat loss tricks like millions of other fat loss tricks such as liquid nitrogen and fat belts, plus they aren’t returning money to shareholder through buy backs and dividends so already that doesn’t see like a value company, at least not in the traditional sense. Plus this company is not based in USA but then they IPO in us stock only so their main purpose is to get your money, and not to provide value or products.
@@slimjimjimslim5923 Thank you for your explanation. I would like to clarify one thing though, which is that the company is based in Israel and it has enjoyed Israel's tax benefits as a result (therefore not a China based Company). Not sure if it makes a difference but it's something worth mentioning.
@@slimjimjimslim5923 Where are you getting your facts from??? You can argue for Izreal/Us but not for China. They are providing products. I dont know what is "value company in the traditional sence" in your world. Value investing - that's something different and there was no attempt to calculate intrinsic value of this company whatsoever.
Sven, curious to hear any of your new thoughts on Intel INTC after the earnings call. This is one of the stocks you talk about here on TH-cam. The market is dumping the stock after 22% decline YoY…. Now in the mid $30s with a stable dividend yield but a ton of uncertainty. Would you give us a Sven Carlin update on Sven’s THOUGHTS on Intel? After Q2 earnings call, does INTC still fit you? Thank you…
So your main concerns are huge cash position in balance and high p/s even with good p/e?
Do you invest in growth companies or value present only in shity ones?
P/s only high because their margins are so good
any updates? looks like revenue is indeed down significantly from last review looks much cheaper now but not sure if any more upside or the underlying business changed...
Mgmt is buying 20% of the shares outstanding. This is great for shareholders
Great video thanks! Any chance of doing a review of Medifast (MED)?
not big on medical stocks :-(
the company has been ipo for 3 years already, when the stock was around $100 last year nobody put a video questioning its credibility. now stock dropped by 70% from its high and the valuation gets attractive people starting saying “this is too good to be true, this must be a fraud” 🤣🤣🤣 🤣🤣
Totally agree with you, and some people you can beat over the head, with a
great deal, and even if their research says it's OK, they still do nothing. No
wonder most investors don't make money, and are broke.
I mean ...
@@flashpadxxxjust bought back the stock today😂
Your sense of hunger Sven is a killer 🤣🤣
Seems good that their recurring income is going up, but still not sure what their competitive advantage is.
Sven what's your opinion on Himax?
'When you see a stock go down or.. panties go down' !! Always much love from NZ, Sven :)
Thank you Sven. Again a very interesting analysis. Could you have a look at Schneider Electric. It's a world leader in energy management systems and automation. Looks like a decent business in my opinion.
Hi Sven. Thank you for the nice insights. You talked us about the inelastic market hypothesis in relation with the buy backs of a company. I would like to know how this theory can be applied to "VERA BRADLEY (VRA)". The company declared in December 2021 a 50 million buy back program that expires in December 2024. They have no debt and a cash position of 63 million. they have already spent 15 Million dollars in buy backs at an average price of 7.35$ in Q1 2022 (page 18 of the 10Q). The price per share at this time is 4.53. Do you think, it makes sense to buy this company, given the fact that they lost money (7 Mio.) in the Q1 2022 and could lost more money in the upcoming quarters. My question is: Why should I not buy this company? Thank you for taking the time
You got me with that title hahahah. Didn't sound like you! Thank you for the video
Ciao Sven, Nel video mostri un balance sheet, posso chiederti se per favore mi dici che piattaforma usi per analizzare i dati ?
Sven it seems bank stock are doing really well. For instance City (C) is sitting at 6.2 P/E ratio with tail wind of increasing interest rate and 4.14 dividends.. why dont you do City stock review? Also MRNA sitting at only 4.14 PE ratio and it has huge potential as we are still under COVID... i dont even understand why those stocks are so cheap !!
here is my take on bank stocks!
@@Value-Investing What do you mean ? I am confused. Can you pls elaborate ?
Thought the same about Inmode a few months ago. I liked Huntsman (HUN) more at the time. Understood more the business and I have more confidence on the growth potentiel of that business.
What are your thoughts on John Deere. They increased their dividends last year. They are a cynical company though.
They don't return any value to shareholders lately the free cash flow is rising their expenditures are low ,but they keep diluted shares and they didn't acquire anything lately
No paying dividends either.
Haha nice!
Now please could you do a video about Lovesac? Looks like a strong buy now, want to hear your opinion :)
I had to watch this video twice. I do like my stocks the way I like panties. Thanks for teaching us that not all that glistens is gold. Sometimes a stock deserves to be gold. I never considered your angle.
Yes, I completely agree. It’s a very high risk company to invest in, and the company website and information has a slick sales pitch feel about it that makes me think of the saying “it’s too good to be true“. the money we save to invest is perhaps not vital for our every day expenses but it’s still very hard to save, And we have a responsibility to ourselves to invest wisely.
thanks for sharing!
Stock is up 40% since you made this comment. This company is very low risk. High, growth, lots of cash 400m, no debt, huge margins and company buying back shares. They just increased guidance and you decide that a cloud TH-camr can look at a stock and give you a proper update on that stock. This guy knows very little about this company and if you listen to con artists like this you will miss out on great opportunities in the market.
@@aarondowling1 Now INMD is just 21 dollars, so you are wrong!
Interesting perspective. I almost pulled the trigger on this one a few months ago, but decided not to. I'm curious, Sven, when is hoarding cash okay for a company?
Is a company that hoards cash but pays a small dividend ok (IBA for example, 50% MC value in cash, but 2.25% dividend)? Or do you expect them to do more for shareholders?
I don't think it's purely about hoarding cash (look at Google for instance and it has a ton of cash BUT its share count has NOT been skyrocketing like this company, it's all about capital allocation). The problem with this company is that it's been issuing stocks to compensate employees and executives but at the same time, it HAS NOT been buying back that same amount of shares to offset dilution, so the question is what are they going to do with all that cash?
Hold on tight for the pump and dump!
What a relief. I thought you were going to back this shit
Thanks for pointing out that it has no moat. Would be interested in companies that have moats.
I didnt really understand why you say this stock is no good. Can you elaborate? Is it simply in your opinion too good to be true? Or are their products scam in your opinion? Not exactly sure what your thoughts are after watching this. Thank you!
From my understand of the video: They make money and don't give back value to shareholders. Not through dividends, not through buybacks (they're actually diluting shareholders), and not through acquisitions. Which begs the question, why are they hoarding money, for what? for themselves?
@@k4ir0s
Mar 10, 2022, 08:00 ET
InMode Announces Share Repurchase Program of Up to 1 Million Shares equal to $25-30m.
Please could you do a video on S4 Capital (LON: SFOR)?
that is a scam. Avoid
@@wesleychambers16 The growth is not bad for a scam
Where can I find the TH-cam portfolio positions?
Thanks
Hey Sven, would you please take a look at Douglas Elliman? It's a real estate broker (mostly luxury), 3.6% dividend yield, 9.42 P/E, OK balance sheet. It was spun off from Vector (tobacco company) at the end of last December and has been in a free-fall since (56%) because of the overall negative outlook of the housing sector + also some selling pressure from Vector shareholder's. I think all these make it value stock.
HI guys,
Which website dies Sven you to show history of company earnings?
Thank you
Ok my year was made today!
U only one saying something negative abt it I loved ur honest opnion especially accompied with ur exp.
Another thing people not Talk abt is it's future, its runaway. Since its a fixed cost business not a saas kind with recurring expenses what will they do when they sell it to all there prospective clients?
They get a cut, so it's like saas.
Great video as usual! Since you analyze a lot of companies, when you come across companies that are very overvalued do you consider shorting them? As a value investor, I'd love to hear your opinion on shorting stocks and what criteria you would use. I appreciate all your dedication to the education you provide us.
He normally doesn't short because the risk/ reward is pretty bad: you can gain up to 100% but lose everything.
The market can stay irrational for longer than you are able to stay solvent. He also made a Video about it.
@@bastikl.3528 Thanks for the feedback. I figured it wouldn't be a strategy he used often but figured with all the research he might find something that would be so clear that the risk/reward would be within his parameters. I'll try and look for the video. Thanks!
It's great that people will get slimmer with this laser treatment!
It's revolutionary...
Hi Sven, can you make an analysis on Alpek (ticket symbol ALPEKA) please?, it is a Mexican company of plastics/polymers production with plants in USA, Mexico, Latin America and UK that like Inmode "has everything" (at least financially, it is a boring company) , but they have been +10 years in the stock market and in the Mexican Stock exchange only, its FCF 5Y CAGR is 25% and it often pays dividend (current yield is 6.5%), some buybacks, coverable debt, etc.
hey. great video. anybody know how to learn these scams by example? i'm new and i want to learn why inmode is dangerous
Saw inmode about a month ago. Bought it a week ago. I think it's a ten bagger
I should note that while I understand the risks involved here all the research I've done with the product doctors who buy it are very happy with it. Are there issues sure but the product itself dominates a good niche and could easily be bought out of that's what it comes to
@@loganshearer7706 Me too, but I am worried about the piling cash, use it to grow or pay div do massive buybacks.... Currently it is just piling up
@@RanNaot I should note that while the business is mainly focused on plastic surgery they have also said they are expanding into ED and lasik. They essentially halted everything when they got a windfall from the pandemic. I think the cash pile is there to toughen our economic headwinds. Dispensing the cash wouldn't be wise
@@loganshearer7706 I bought a lot of share and some call options when it was at a price of 23 (waiting to buy puts to hedge my holding), so I am a holder. But like any company I own, I have my concerns, with INMODE its the cash, its not the first quarter that cash is piling, and its unclear where its is heading. I hope we will get clarification on the coming earning call, I am still bullish on the company, but also know that this is a very transit industry (the esthetic medical devices) so I want to be cautious.
I will just copy paste what I wrote on Daniel Pronk’s channel when he reviewed the company some days ago. Very sceptical with these types of companies. Too many red flags for me. 1. I cannot find what is so special about their technologies, there is competition in this sector and competitors seem to provide the same type of systems and services - flying through some of their FDA registration filings their systems seem to typically claim substantial equivalance to systems already on the market - no moat - which makes me wonder why their profit margins should be so much better than anybody elses? 2. management commitment - questioning commitment of their CEO and founder who sits in the boards of 14 other companies? That seems like a lot. Not sure about the CFO, who seemed to have done a lot of job hopping in the past. 3. if something is looking too good to be true - it usually isn‘t true. But will put in on my watchlist just to see how it will develop over time. I may be wrong with my concerns - but that‘s fine, I can live with a missed opportunity =).
There isn't anything special about their products. RF technology and microneedling have been around for years. Do an amazon search. The only thing that is special about it is that they are making devices that clinicians in the field like using. Right now, they are the go to name. I personally started buying it recently at around 22-24. Trimmed at 30, but will look to buy back some shares next week leading up to the FOMC meeting. This can potentially easily be back at $40 in the next month or two.
What do you think of Future Plc?
I would like some comment on this company
It has everything except a significant TAM and only 10% of rev is recurring from sales of consumables. Saturation is around the corner.
The moment you described what they did, I just laughed. I could also hear some of the sarcasm in your voice as your described it.
I have to agree with you, just looking at the website, it just screamed 'snake oil' product to me. That's not to say that snake oil doesn't sell, or can't make you money in the short term, but I would be very sceptical of this company as a long term hold. It reminds me of another company with a dubious product: Zynex. There I was lucky as I boarded the hype train at $28, but now it is at $8 or so.
thank you
Thanks Sven! By the moment that smells.
:-)
A market cap of $2.37Billion and 35 people working in research. That's a value of $67 Million per researcher.
When talking on health innovation, researcher quality and quantity is important. So if each researcher makes the company more than $67 million each, great. I doubt that.
hahaha, good one!!!
Hi Sven, I suggest to have a look at Hellofresh. It is the only mealkit company actually turning a profit and being fcf positive. What's more it has come down due to inflationary worries and its peers posting bad news and bad results. Hellofresh has become the market leader in most of its market and now seems to have a moat in terms of infrastructure over its direct competitors. It's main selling proposition imo is saving mental and physical time, hence convenience. One of the main threats is customer churn. Another one is new entrants with logistic and marketing machines behind them. These threats are increasingly reducing as the come grows in absolute and relative size. I think the valuation is attractive at EV/EBITDA ratios hoovering around 10.
Nice, I thought you were going to buy the stock. I work in a tech business and my CTO has a PhD but I wouldn't trust my money with him.
Before you even started commenting on the “red flag” in the second half of the video, I already have similar thoughts that the business is too good to be true! My first thought is how resilient will the business model prove to be in a recession or bad economic situations.
I am glad we are like-minded. I learnt a lot from watching your videos and see you as a mentor. 😊
I've seen lots of posts on Reddit about awesomeness of InMode, but I'm yet to see anyone thinking of Theranos when they write those. Both companies specialized in magic...
Iam asking myself which stock could profit of the high energy prices in europe, especially for their industries?
I've had my eye on Inmode, and have been in and out of the stock over the the
last 2 years. It has great growth, but slowing lately, but so have all economies, and
their type of product gets put on hold when cash is tight. I think there's a huge market
for the products they offer, as people always want to look better, especially women.
The only thing that Sven points out as a red flag, is the amount of cash their holding,
but I don't see it that way. Should they need cash, then they will have it, and not have
to go to market and borrow at high rates. You do have to wonder why their diluting
their shareholders tho, and issuing more shares, when they have all that cash ?
I think this is a stock worth watching, as it come make some people extremely rich,
but you never know for sure. From what I've seen so far, they look great.
They diluted shares up until 2019. 2020-present they have been buying back. I don’t know what Sven is talking about. They bought back 4 times shares vs sbc in the ttm.
Take a look at Envista Holdings Corporation NVST i would be curious if you like it :) also Medical Instruments and Supplies
And they issued shares while the company was at all-time highs... smart business move considering the stock went on to crash 60%+
You are hilarious. Great vid.
Caution: InMode put devices on market that doesn’t have FDA approval. They won’t provide clinical studies. They ignore your concerns about the devices and won’t address your problems. I was told I could return the device I bought if it did give satisfactory results. That’s not the case. They want to get the device sold quickly and use loan sharks to over charge you and information about the loan. I would caution practitioners from buying from this company. I would advise patients to stay away from their body contouring device. In my practice I have started using it as a free treatment and still struggle getting people to use the device. If you try to sell the device you will get A fraction of what you paid. This company has very bad business ethics.
Yes, it smells from the inside out!!
Hello Sven, thank you for sharing your knowledge and experience, this stock has all the ingredients for an Olympic scam.
:-)
Stock dilution and buybacks! Shun Zhu approves!
idk this medical company has like you said in your words comes off as scam. The website look and feel seems cheap too. idk getting weird vibes. I would like to see more of a third party medical analysis of their tech.
Haha I was watching this video expecting a great company. But as you showed what they did I was like... Come on Sven you are better than this. But then you made your point and I was glad haha. I don't agree with everything you say but I trust you on this one
Don't get how meaningful of a statement it is with growth is slowing when pointing out a Dec '21 vs TTM of Q1 '22 that still shows a increased income (with ~75% of data overlap); basically just looking at one quarter's change in net income; numbers look quite different comparing Q1 '22 vs. Q1 '21....products do look odd: but alternatives to that nonsurgical procedure well involves surgery/Anastasia--a good chunk of people would try something non-surgical first.
If you train a bit You may even reach level of deadpan sarcasm use by Patrick Boyle in his videos :) I like this one, adds something new. Anyway, If I was to propose small tech company to keep eye on, I would propose Vigo System S.A. from Warsaw Stock Exchange (VGO). World leader in producing uncooled infrared photon detectors, which is now ramping up production capabilities, so cut dividend and negative FCF thanks to capital expenditures like building new clean room.
Grazie per aver analizzato INMODE!!
Sapevo che ti sarebbe piaciuta 🚀
Come non detto 😂 ho finito ora di vedere il video
I can smell now miles away when sven is being sarcastic 😂
I started following Inmode few weeks ago, I came to the same conclusions as you and I decided not to invest in it. This video just confirms my worries. Thank you Sven
8 patents ? That sounds like a start up in this sector. Patents run out, can be challenged etc. 8 Patents means they do not have that much products patented and they rely on very few products. That may be normal for a small company, but makes it risky. Usually for one product there are several patents.
Company founded in 2008... Definitely a start up and very normal to have few employess
Can you take a look at KSS?
Unity Software Inc ……value buy? Largest phone video game company, making moves to move to metaverse like many other tech companies, debt to market cap is pretty good, dropped significant in value during recession
Please analize Vidrala. Good management, fairly priced and a boaring business.
Great video Sven! Agree with your views on the med company, the competitive landscape is really hard to predict. Especially if you are not working in it 😅