Keep on Smiling: SmileDirectClub

Published on
October 15th, 2019
Duration
11 minutes

Keep on Smiling: SmileDirectClub

Trade Ideas ·
Featuring John Jannarone

Published on: October 15th, 2019 • Duration: 11 minutes

John Jannarone, editor-in-chief of IPO Edge, analyzes the recent IPO of SmileDirectClub and discusses his contrarian bullish outlook for the stock. He also reviews his losing trade on iPic Entertainment, updates his thesis on Colony Capital, and notes how traders can take advantage of the current opportunities in this interview with Jake Merl. Filmed on October 10, 2019.

Comments

Transcript

  • JK
    Joseph K.
    2 November 2019 @ 02:54
    Everyone here is overthinking the short thesis on SDC. They’ve been operating under this level of scrutiny since 2014. Their addressable market given the price point is far greater than ALGN. There’s an acceptable level of risk with every product and the DOJ will allow SDC to continue to operate because the pros of the affecting the greater good outweigh the cons. Ask yourselves what the incentives of those lobbying Dentists are...this is an easy 3x.
  • BG
    Ben G.
    31 October 2019 @ 19:32
    Ridiculous analysis. He claims they'll get to EBITDA margins above Invisalign who has much higher pricing. Their margins have to go down not up, its not that the regulators are going to put them out of business, its that they are going to require some basic oversight of patients so people who shouldn't get the product don't. Also the product is really not effective, one has to go to the dentist to have some attachments put on the teeth so it works correctly.
  • RS
    R S.
    19 October 2019 @ 03:18
    Thanks for having John back, especially appreciated commentary on previous trades! Real Vision could do more of this, include quick updates on prior picks, whenever a guest returns. Thanks RV!
    • RS
      R S.
      19 October 2019 @ 03:33
      Although I don't support a company which lowers dental office visits. Going to the dentist is necessary.
  • RG
    Richard G.
    16 October 2019 @ 23:51
    My wife is a lead ortho assistant and recently went to a conference where she brought up the topic of Smile Direct Club in between sessions and at lunch. 100% of them were against it and told horror stories about clients that came into the office. As much as I think this is a major disrupter, if the community isn't behind the product, that says something. It still could get legs, but it might be a much harder fight then a pure $ play like many who talk about it.
    • CS
      Charles S.
      18 October 2019 @ 15:16
      Not to mention the new reports of their california stores being raided.
  • dp
    david p.
    16 October 2019 @ 12:55
    This is why many people become State and local politicians... write laws to eliminate your competition.
  • JK
    Jonathan K.
    16 October 2019 @ 12:40
    Dental boards have a duty to protect dental patients. That is their purpose. Moving teeth without radiographic clearance prior to treatment is reckless and invites not only litigation but also doing real harm to patients. These are the facts. The Dental Board of California recently made a rule that every ortho patient must have radiographs prior to treatment. Every normal dental office already plays by this set of rules. First you make sure the patient has healthy gums and teeth, then you proceed with ortho! Not the other way around. This trend of state Board action will not stop. I'm a dentist, and tons of dentists are short this stock. All my friends are short and refer to this stock as "trash". I'll get out the popcorn when patients start bringing the "teledentist" who approved some of these cases where the patient has rampant gum infection to the Board of Dentistry. I totally disagree with John, I would sell this dog of a stock. I have no position and usually when I short stocks I get run over.
    • RS
      R S.
      19 October 2019 @ 03:31
      Agree, SDC is actually keeping people from going to the dentist. That is causing harm.
  • rw
    rory w.
    16 October 2019 @ 01:51
    This guy picks iPic which lost tons of investor money and now the guy wants smiledirectclub. This guy is not a good investor. Smiledirectclub cannot survive in this market. I will not argue whether this product is good, I will argue there is so much competition that could enter this market easily. The debt this company sits on makes it a zombie unicorn.
  • CM
    Chris M.
    15 October 2019 @ 15:09
    Believe Smile Direct will be facing numerous government challenges. Since this video was recorded, California came out with a new law that hurts the company's business model. Trading for 6x sales and losing money, would wait on this one.
  • JK
    Jay K.
    15 October 2019 @ 08:18
    John still has one of the best track record on Trade Ideas even if iPic goes to zero.