Momentum Stock Watch: BIOLASE, Inc. (BIOL)

Company Profile:

BIOLASE, Inc., a medical device company, develops, manufactures, markets, and sells laser systems in dentistry and medicine in the United States and internationally. The company offers Waterlase dental laser systems for cutting soft and hard tissue; and diode laser systems, which are used to perform soft tissue, pain therapy, and cosmetic procedures, including teeth whitening. Its dental laser systems allow dentists, periodontists, endodontists, oral surgeons, and other dental specialists to perform a range of dental procedures, such as cosmetic, restorative, and complex surgical applications. The company also markets, sells, and distributes dental imaging equipment, including cone beam digital x-rays and CAD/CAM intra-oral scanners. It sells its products primarily to dentists in general practice through its field sales force and distributor network. BIOLASE, Inc. was founded in 1984 and is headquartered in Irvine, California.

Recent News:

On April 13, 2017, the company announced that investors including Oracle Partners, L.P., Oracle Ten Fund Master, L.P. and Oracle Institutional Partners L.P., the Schuler Family Foundation, and certain BIOLASE directors and officers, have agreed to purchase $10.0 million of unregistered shares of the Company’s convertible preferred stock and $0.5 million of warrants to purchase unregistered shares of the Company’s common stock, in a private placement transaction.

On March 13, 2017, the company announced it has appointed veteran sales executive James D. Surek as its Vice President of Sales for the Americas, effective March 13, 2017.

The company reported 2016 full year revenue of $51.8 million, an increase of $3.3 million, or 7%. Gross margin increased to 39%, up 630 basis points.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

BIOL’s strengths can be seen in its better growth and strong efficiency compared with its peers. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator and RSI stands at 53.39 with positive bias. We rate BIOLASE, Inc. (BIOL) a STRONG BUY.

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