Telehealth Stock Wading Deeper into Penny Stock Territory

SDC is currently down 54% in 2021

Oct 18, 2021 at 10:05 AM
facebook X logo linkedin

SmileDirectClub, Inc. (NASDAQ:SDC) has had a disastrous 2021, racking up a 54% year-to-date deficit. The teledentistry company keeps wading deeper and deeper into penny stock territory, last seen trading at $5.49. Is there any potential of a rebound that investors might want to latch on to?

On Oct. 5, the dental care company announced the issuance of a patent on their SmileBus concept. According to SDC's latest press release, the patent is meant to strengthen protection for SmileDirectClub’s intellectual property as one of the methods for bringing premium, affordable, accessible oral care to more people through its telehealth platform.

It's no surprise that 33% of SDC's total available float is sold short, and not a single analyst rates the stock a "buy." Meanwhile, the shares' descending 80-day moving average has kept a lid on breakout attempts, and has been toppled on a closing basis only once since February. 

SDC Stock Chart

From a fundamental point of view, SmileDirectClub stock is still a very speculative play. SDC’s growth was heavily impacted by the COVID-19 pandemic, with revenues dropping 12% between fiscal 2019 and fiscal 2020. Prior to that, SmileDirectClub had increased its revenues 414% between fiscal 2017 and fiscal 2019. However, the oral care company is not well positioned to continue funding growth with SDC's relatively weak balance sheet featuring $376.65 million in cash and $777.5 million in total debt.

It's also worth pointing out that SDC ranks low on the Schaeffer's Volatility Scorecard (SVS), with a score of just 26 out of 100. In other words, the security has consistently realized lower volatility than its options have priced in, making the stock a potential premium-selling candidate.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI