INMD - Soliton Looks Like An Easy Short -- With One Caveat
Soliton (SOLY) looks like an easy short. The pre-revenue aesthetics company is trying to commercialize its technology, but a potential recession should depress mid-term demand. That issue adds to an existing cash burn problem; Soliton will need to raise capital, likely before year-end.
The energy-based aesthetics sector Soliton is targeting has a history of minimal profitability, yet still includes intense competition. The fact that Soliton licenses its technology — and will have to pay a reasonably large royalty as a result — amplifies mid-term margin worries. The fact that SOLY is a Reg