Seeking Alpha: Solta Has The Chance To Rejuvenate Itself

Solta Medical (SLTM) is either going to make its investors a pretty respectable amount of money, or it's going to drive them most of the way to the asylum. For all of the things that should be so right about this business - a great high-margin disposables business, leverage to the best growth markets in aesthetics, solid IP - dicey execution, shareholder dilution, and turbulent end markets have made for a very rocky road so far.

Over the next three to five years, I expect the company's increased exposure to the body contouring/liposuction markets, as well as follow-on improvements to existing platforms, to build on improving end-markets to drive above-average revenue growth. I likewise look for a growing user base of the company's disposables/consumables and expanded direct sales efforts overseas to improve margins, such that the stock could rise 50% to 70% as the Street buys into the story again.

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Solta Has The Chance To Rejuvenate Itself