Long Position on SDC @ $13.00 on 1/28/2020 (Momentum)

SmileDirectClub, Inc. (SDC) operates a teledentistry platform that provides member's with a customized clear aligner therapy treatment in the United States and internationally.

The company manages the end-to-end process, which include marketing, aligner manufacturing, fulfillment, treatment by a doctor, and monitoring through completion of their treatment proprietary with a network of approximately 250 affiliated dentists and orthodontists through its teledentistry platform, SmileCheck.

It offers aligners, impression kits, whitening gels, and retainers. Shares have formed a bullish "cup and handle" and are expected to head higher from this formation.

On November 12th, Smiledirectclub reported a 3rd Quarter September 2019 loss of $0.89 per share on revenue of $180.2 million. The consensus estimate was a loss of $0.99 per share.

The company said it expects 2019 revenue of $750.0 million to $755.0 million. The current consensus estimate is revenue of $746.5 million for the year ending December 31, 2019. The Company reports its quarterly results on February 11th. 

Entry Point: $13.00

Stop Loss: $12.30

Trading Range: $7.56 to $21.10

Target Price: $14.30

Updates

2/5/2020 9:34:27 AM

SDC closed at $14.50

Position closed on 2/5/2020 at price of $14.50 with a 11.54% gain in 8 days.

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