Palomar Medical: Entering Direct to Consumer Market

A New York presenter is bullish on Palomar Medical Technologies' prospects (NASDAQ: PMTI, $16.16). The company is seeing encouraging signs in its core business of selling skin treatment products and systems to medical practioners, but the attraction of the story is PMTI's recent entrance into direct to consumer skin rejuvenation space. The company's PaloVia wrinkle-reducing product started selling on QVC two months ago, and the initial results have exceeded internal expectations. Management sees the product going mainstream in the not so distant future, based on its cost, efficacy and relative ease of application. Potential upside in the $16 billion domestic skin beauty market is very significant. Depending on the number of treatments sold, incremental earnings from PaloVia can reach $1-2/share.