ALGN comments?

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So I had been considering ALGN recently, with the big hit today from their earnings, at the low point, they were down 50% from their recent high hit just a month ago! Now down about 44%, for those holding and following this stock, is this an extreme, over reaction or are the companies prospects now only half of what they were a month ago?

I’m sure the answer is somewhere in between, they were overvalued before, now, probably undervalued, the market has a way of overshooting on the high and low end (opportunity for us).

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now, probably undervalued

Perhaps the fall in share price is partially related to ALGN approaching the date of expiry of key patents

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for those holding and following this stock, is this an extreme, over reaction or are the companies prospects now only half of what they were a month ago?

It’s not a binary probem, there are other alternatives such as the stock having got ahead of itself or a shift in market interest/focus. My point is that a narrow perspective is not useful.

When you study Align carefully you’ll find:

  • Lower than expected guidance
  • Disproportionte cost of goods sold
  • Management’s explanation of the above
  • High valuation
  • Market correction/rotation
  • Traders vs. investors vs. high frequency algos
  • Other stuff I’m missing

Treating the above as a binary issue does not work.

Denny Schlesinger

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