InMode (NAS:INMD) — mrkt cap 2.33B; Price $28.09; trailing P/E 13
MORE RESEARCH NEEDED. InMode is an Israeli-based medical device company specializing in technology that utilizes radio frequencies and laser equipment to enhance aesthetics. They emphasize their niche position in the growing minimally invasive aesthetic treatment market. Despite being in a growing industry, the current valuation resembles that of a value stock, having decreased by 70% from its highs due to concerns about reduced spending on medical capital equipment. If we can gain confidence in the effectiveness and durability of their technology, we plan to conduct a more thorough analysis. We have a meeting scheduled with a cosmetic industry professional next week who has extensive experience with InMode’s Morpheus 8 and Triton treatments. We hope to learn a great deal more by then.
Amcon Distribution (NYSE:DIT) — mrkt cap $116mm; Price $191.23; trailing P/E 10
PASS. Amcon Distribution is the sixth largest convenience store distributor in the USA. What attracted us initially to Amcon was the high degree of operating efficiency it exhibited. However, Amcon is being squeezed on both sides of the ecosystem from both suppliers and customers. Distributors exhibit better profitability profiles the more fragmented its ecosystem is as no customer or supplier has significant purchasing power. Unfortunately, the convenience store landscape is heavily consolidated, and DIT primarily distributes branded products from large companies such as Hersheys. Although it is well run, its waning strategic positioning prevents us from looking much further.
Tomra Systems (TOM-OSL) ADR — mrkt cap $3.03B; Price $10.4; trailing P/E 28.8
MORE RESEARCH NEEDED. Tomra, a mid-cap Norwegian company originally founded in 1972, began its journey as a reverse vending machine company. Over the years, it has evolved into a prominent market leader, providing industrialized solutions to companies engaged in waste sorting and processing. Many Material Recovery Facilities (MRFs) responsible for waste sorting have recognized the need to upgrade their facilities to reduce contamination rates in recyclables. Despite its currently high valuation, exploring Tomra further could be worthwhile, especially if we gain confidence that cost pressures have eased. The company presents an intriguing opportunity in the realm of sorting technology and the promotion of the circular economy.