Syneron Medical yesterday reported a better-than-expected quarter and raised guidance. Today, much to Cramer’s surprise, the stock is down almost 6%.
Competitors are disappointing left and right, he said, but this non-invasive medical company, which does everything from hair removal to wrinkle reduction to dental products, had 52% growth in North America and 21% growth internationally. The balance sheet is clear too – no debt and $6.90 per share in cash. Even the pipeline is strong.
So what’s wrong with Syneron , which today sunk $1.48, or 5.9%, to $23.67?
CEO Doron Gerstel said the problem is competition. Traders are looking at the five or six companies that are coming public.
“I think they’re worried about our situation in this market,” he said.
Cramer’s advice: “We wait for the IPOs to happen. We see if it puts more pressure on ELOS. And only then do we buy. It’s too early.”
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