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1 The FDA triple Play How to Make 400% or More on Companies Curing Tattoo Regret and Other Ugly Cosmetic Conditions

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Page 1: The FDA triple Play - Home - Wall Street Dailywallstreetdaily.com/members/reports/TAO/TAO_FDA-Tattoo... · 2015-07-20 · 3 The FDA triple Play How to Make 400% or More on Companies

1The FDA triple PlayHow to Make 400% or More on Companies Curing Tattoo Regret and Other Ugly Cosmetic Conditions

Page 2: The FDA triple Play - Home - Wall Street Dailywallstreetdaily.com/members/reports/TAO/TAO_FDA-Tattoo... · 2015-07-20 · 3 The FDA triple Play How to Make 400% or More on Companies

2The FDA triple PlayHow to Make 400% or More on Companies Curing Tattoo Regret and Other Ugly Cosmetic Conditions

THERE’S NO ESCAPE. THEY’RE EVERYWHERE.America is infested with 45 million of them. And unless you have natural antibodies, you’re at risk of catching the infection.

Young adults are particularly vulnerable, especially the socially active.

It isn’t pretty, either.

The condition can disfigure your face, your arms, your legs – anywhere on your body!

It’s more contagious than Ebola.

Society shuns the severely afflicted. Fall prey to this contagious menace, and you can find that it’s all but impossible to land a job. It’s like being a leper.

In fact, young adults are so susceptible, it’s estimated that 22% of Americans from 18 to 24 are infected, as are 30% of those from 25 to 29.

The good news is, it’s not fatal. This affliction can even be cured, but not without undergoing treatments that can easily run $4,000.

Since this price is too much for most people, they go on about their lives, concealing their shame as best they can…

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Cost Isn’t The Worst Thing About This ContagionJust ask Hollywood starlet Megan Fox.

The disease appeared as a softball-sized blotch on her forearm. During an appearance on The Tonight Show, she described how it felt to undergo medical treatment for it.

“It’s incredibly painful,” she told host Jay Leno. “Your skin sort of explodes and looks like little kernels of popcorn popping up.”

Whether you’re a celebrity or everyday American, however, it makes no difference. Typical treatment for this terrible ailment is an equal opportunity tormentor.

Cashing in on The Tattoo Removal IndustryIt may be a surprise, but I’m talking about tattoos.

And while they’re not a “disease” exactly, they can be just as contagious.

Young people often feel the need to get a tattoo in order to gain social acceptance.

Some have enough self-assurance to withstand peer pressure. This acts as a natural antibody to this condition.

But many young adults don’t have this protection, so they inevitably fall victim to peer pressure.

Others succumb to the influence of the rich and famous.

Indeed, celebrities with tattoos are probably the most infectious.

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Just by virtue of their being rock stars or popular actors, they often influence their impressionable fans.

Once many people give in to these pressures, though, regret often follows…

The Worst Kind of Buyer’s RemorsePeople often forget that tattoos are meant to be permanent.

Changing tastes or circumstances can make people want to erase a tattoo they may have loved before.

The images on the right represent perfect examples of the types of tattoos people might regret a few years down the road.

“Tattoo regret seems to take about 10 years to set in… Since tattoos were widely popular in the early 2000s and still are today, my suspicion is that we are only seeing the tip of the iceberg,” says Will Kirby, dermatologist and Medical Director at Dr. Tattoff, Inc., a 10-location chain of U.S. tattoo removal centers.

As a result, tattoo removal is surging…

According to international market research firm IBISWorld, tattoo removals have rocketed 440% in the past decade.

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The American Society for Dermatologic Surgery reports that its member physicians performed about 96,000 tattoo removal procedures in 2013, a 52% increase from the year before.

That number should only grow from here, too.

Consider that, of the 45 million Americans with tattoos, nine million regret having them (according to a 2013 Harris Poll).

In other words, as the popularity of tattoos grows, so does the number of people who wish they never got one.

It’s an equation that makes the tattoo removal industry especially intriguing right now…

Consider: If just 25% of nine million regretful people decide to have a single tattoo removed, that’s 2.25 million paying customers.

Assuming they’ll pay $1,000 apiece (a conservative estimate), that creates an instant $2.25-billion industry.

And remember, that’s just assuming they only have one tattoo to remove. Many people have several.

It’s a self-perpetuating trend that bodes well for the dermatologists and cosmetic surgeons

In other words, as the popularity of tattoos grows, so does the number of people who wish they never got one.

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who remove tattoos – not to mention the industries that serve them.

Better yet, we’ve discovered three ways for investors to profit from this ongoing trend – all of which have recently been granted FDA clearances...

FDA Triple Play Stock #1: CynosureCynosure, Inc. (CYNO) has developed a new kind of laser removal technology that’s far more effective, faster, and less painful than conventional treatments.

It’s cheaper, too!

How does it accomplish this feat?

Well, it all comes down to laser technology…

Standard lasers, called Q-switched lasers, deliver heat to targeted areas in nanoseconds – or billionths of a second.

But this new laser delivers ultra-short bursts of energy to the skin in trillionths of a second.

This process shoots enough energy to the targeted area that it actually pulverizes the ink molecules into particles tiny enough that the body can eliminate them as waste.

International health agencies recognize this, and they’re allowing Cynosure to make its breakthrough available throughout the world.

Better yet, the technology has proven useful beyond unwanted tattoos. It’s also making headway in other cosmetic industries, including liposuction, cellulite treatment, and wrinkle removal.

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In other words, this new technology is giving fresh hope to millions of people around the globe with various skin problems.

And it’s giving everyday investors like you a chance to snag gains of 400% or more. We’re not the only ones who see the upside potential here, either…

The “Smart Money” Is Already on BoardInstitutional investors see this company’s vast potential, too.

In fact, 125 funds currently hold shares.

For instance, Wells Fargo (WFC) owns $26.42 million. TimesSquare Capital Management has $26.38 million. BlackRock Fund Advisors holds $25.54 million.

When you consider the following growth drivers for the company, it’s not hard to see why…

The tattoo epidemic: As the army of Americans infected with tattoos grows, so too will the demand for tattoo removal.

When you consider the following growth drivers for the company, it’s not hard to see why…

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Demographic trends: The market for the company’s products is growing rapidly because the population is aging, getting fatter, and is more youth-oriented than ever.

Safety profile: Many patients want a doctor to remove fat and cellulite, but don’t want to go under the knife or full anesthesia. This company’s devices offer safer, less expensive alternatives.

Convenience: The procedures done through this company’s products, like fat and tattoo removal, happen in an outpatient setting in a doctor’s office… No trip to the hospital is required.

Strong financials: Revenue rocketed to $72.6 million in Q2 2014, a jump of 45% for the same period in 2013. And over the last 12 months, it’s raked in $130.28 million in profits.

Indeed, all signs point to Cynosure’s momentum continuing over the coming months and years.

Especially when you factor in the company’s recent FDA approval…

A Major FDA WinOn July 29, 2014, the FDA approved the company’s acne scar removal treatment, PicoSure.

With the 20 million people who suffer from ugly acne scars, the market potential for this treatment is massive.

And Cynosure’s laser is the only one of its type with FDA approval to treat these scars.

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In clinical trials, 77% of patients who were treated for acne scars achieved more than a 50% improvement.

Every single physician who took part in these trials reported satisfaction with the results after their patients’ three-month follow-ups. And 86% of those patients expressed satisfaction, as well.

This new acne treatment has the potential to be a blockbuster, and, in combination with the tattoo removal surgeries, has the potential to add $1.95 billion in annual revenue to Cynosure’s coffers…

That translates to almost $82 million in additional net income at the end of 2014 (a 4,200% increase over 2013 income).

Assuming the price-to-sales (P/S) ratio remains at the same level, that would give us a stock price increase over 1,300% if Cynosure hits its operational goals.

On such merits, Cynosure alone could explode 400% or more in just a few short months.

Action to Take: Buy Cynosure (CYNO) at market.

This new acne treatment has the potential to be a blockbuster, and, in combination with the tattoo removal surgeries, has the potential to add $1.95 billion in annual revenue to Cynosure’s coffers…

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FDA Triple Play Stock #2: CuteraCutera (CUTR) is a Brisbane, California company engaged in the design, development, and manufacture of laser and other energy-based aesthetic systems for healthcare practitioners.

The stock is a micro cap, with a market capitalization of nearly $145 million.

The company’s stock peaked at a high of $42.12 in 2005, but – as you can see in the following chart – now trades in a relatively narrow range of about $10 per share.

Don’t think the stock will be range bound forever, though!

Recent developments indicate that the stock will soon return to its glory

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days. In fact, it could revisit its previous highs, meaning investors could see returns of up to 350%.

You see, what promises to push the stock higher, while setting Cutera apart from its competition, is its laser platform called “enlighten.”

This new laser system has recently received FDA approval for the treatment of benign pigmented lesions (i.e., skin imperfections like age spots and liver spots). This new tech should provide CUTR with a significant lead in this high-margin sector of the aesthetics industry.

Shares have already experienced a notable uptick, too.

Since receiving FDA approval for enlighten on August 5, the stock has climbed nearly 6%.

So what makes this technology superior to the competition?

The enlighten platform is the company’s third-generation product. It’s also the only dual wavelength and dual pulse duration laser system approved for use in the United States.

Since receiving FDA approval for enlighten on August 5, the stock has climbed nearly 6%.

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Much like Cynosure’s technology, Cutera’s laser operates with pulses lasting a trillionth of a second. This radically reduces collateral damage to surrounding skin.

And unlike other aesthetic lasers, the enlighten system’s short bursts of light work on virtually all skin types and colors. Additionally, the system’s dual wavelengths and independent adjustment feature provide users with a broad range of treatment settings.

Best of all, clinical trials have documented a 100% success rate in the elimination of benign pigmented lesions.

Just as exciting, though, is the news that enlighten is also pending clearance for tattoo removal.

With enlighten, the medical community has a high-power, versatile device that allows practitioners to leverage the clinical possibilities of extremely short pulse duration treatments.

Commercial shipments of enlighten began in the fourth quarter of 2014 – with improved financial results expected to show up in reports by 2015.

Now, a look at the company’s Q2 2014 results shows that Cutera experienced a net loss of $2.7 million, compared to a $638,000 loss the previous year. But much of the loss is attributed to ramp-up costs related to the development of enlighten and the need for a much larger sales force.

The company is currently sitting on more than $81 million in cash for use in facilitating a significant increase in its domestic and international market shares in the second half of this year.

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Cutera expects the market for aesthetic procedures to increase well beyond the current 32% annual growth rate, due primarily to growing numbers of aging baby boomers looking to eliminate age spots – along with tattoos they now regret.

And if all goes according to plan, it won’t be long before Cutera begins a protracted climb back to prices not seen in nearly a decade.

Cutera is on the cusp of a revolution in aesthetic healthcare – and prudent investors can profit from the efforts of this forward-thinking company and its revolutionary aesthetic treatment systems.

Action to Take: Buy shares of Cutera (CUTR) at market.

FDA Triple Play Stock #3: SyneronSyneron Medical (ELOS) is a small-cap aesthetic medical products company with a market capitalization of more than $387 million.

This Israel-based company is engaged in the research, manufacture, and development of aesthetic medical products based on its patented Electro-Optical Synergy (ELOS) technology. ELOS is currently used for hair removal and the treatment of vascular and benign pigmented lesions.

As you can see from the chart on the following page, the company’s stock performance is similar to Cutera’s. That is, it’s traded in a relatively narrow channel for years.

Syneron also benefits from a recent FDA clearance, however – one that

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could send its stock skyrocketing back to the highs not seen since 2005.

You see, Syneron recently announced that the FDA has cleared it to begin using a new component piece for its Gentle Pro Laser.

Essentially, this expands the functionality of its current lasers to treat nail fungus (onychomycosis).

Onychomycosis is one of the most commonly diagnosed foot conditions, affecting 10% to 12% of the global population.

The condition causes thick nails that frequently injure surrounding skin – resulting in secondary infections and ulcerations in otherwise healthy tissue.

Diabetics are particularly at risk of developing the condition. In fact, more than one-third of diabetics are diagnosed with onychomycosis.

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And the condition frequently leads to cellulitis, a serious bacterial infection that kills about 30,000 patients in the United States each year.

Treating nail fungus is currently a $1.6-billion market in the United States. Yet current treatment options are limited, since it’s difficult to penetrate the nail with anti-fungal medications. Not to mention that these medications come with serious side effects, including the potential for hepatotoxicity (liver damage), which poses an unacceptable risk to many diabetic and elderly patients.

But Syneron is perfectly situated to capitalize on this chronic condition…

Syneron’s laser therapy will allow physicians to treat onychomycosis by applying precisely controlled heat directly to infected nails with the device.

This laser-generated heat kills the fungus without the need for oral medications, and accomplishes this with no discomfort to the patient.

For investors, the impact of Syneron’s capital spending is starting to push the stock higher already.

But Syneron is perfectly situated to capitalize on this chronic condition…

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Since receiving FDA approval for this device on August 14, Syneron shares are up more than 6.1% on much higher than average daily volumes.

The company reported Q2 2014 total revenue of $64.6 million, an increase of more than 6.1% year over year. And North American sales grew more than 20%.

The company ended its most recent quarter with more than $96.4 million in cash – and, more importantly, it accomplished this without taking on debt.

This leaves the company with sufficient cash to seize the opportunity in dominating the global onychomycosis market.

Ultimately, as the company expands its reach, it’s giving investors an opportunity to ride the stock back to its previous highs.

Action to Take: Buy shares of Syneron Medical (ELOS) at market.