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BIOLASE, Inc. Message Board

  • i_gotta_have_more_cowbell i_gotta_have_more_cowbell Oct 1, 2013 4:07 PM Flag

    4th Quarter Indications

    Today is the first day of the rest of your life, and the 4th quarter. AMZN gave us a heads up when the online retail giant decided to hire 70,000 workers for the holiday season with an additional 15,000 in the UK (40% and 50% increase respectively) This tells us people are more willing to part with their money, consumers are consuming. The next piece of the puzzle that will seal this trend is what activity shippers report. Companies like FDX, the largest cargo shipper in the world, will confirm that more stuff is being shipped. FDX's second quarter ends Nov 30 (recall earlier discussions about calendar vs fiscal reporting period)

    More people with more disposable income = a choice for business owners like dentists to pony up a larger tax payment, or reduce their tax liability with an invest in a business related expense like an iPlus. Unlike FDX whose tax year ends in May, the typical dentist uses a calendar period, and has until Dec 31 to use it or lose it. This is it, it's harvest time. All the planting, feeding, and watering all comes down to the last quarter. The spring symposium, last month's shows, the agreement with Sun Dental, all of the stroking leads to closing the deal this quarter.

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    • Lets see how long the incompetent mgt will take to come clean on qrt.....

    • I pity your husband.
      Does your big yap ever shutdown?
      Spouting Econ 101 and Acct 101 is so tiresome.
      I regret I took you off IGNORE even for the short-term.

    • Today was a great start.

      Sentiment: Strong Buy

    • cowbell, you are my go to guy on the posts. I disagree with you on one point. I do not think making money in the short term is what is going on at BIOL. They are headed into new applications, and to me this is just the beginning of something important. Evidence the new patent today for opthamology! Also, notice no hype from company - some serious folks on board now and they see the future. Best wishes, Go BIOL

      • 1 Reply to alfwilso
      • Thanks alfwilso, my fantasy is that a community would start to take shape, and investor discussion would replace the nonsense, but not entirely, I still like tangling with bashers, they make me feel like I'm Andre The Giant smashing their own hand against their faces saying "stop hitting yourself!"

        I really just want to present a starting point that others will expand on, and add their own thoughts, experience, and analysis to. It's good to hear alternate points of view, otherwise I could just talk to myself. That said, I think our consensus is relatively similar; the semantics of "making money" might be the issue.

        Too many people mistake seasonal fluctuation as a trend, but revenues are consistently growing when studied correctly on a year over year basis, or with trailing twelve months. I'm not concerned about earnings at this point, but I do want to see sales, or revenue to continue growing, and I have no doubt that they will. From a business standpoint I want every available dollar going toward expansion, but a publicly traded company has to play some politics too, and they'll cough up a few bucks for earnings this year, plus as a show of good faith they promised Comerica they would, as well as getting the additional $5M. I'm not convinced they had to do it except to make the lender happy.

        I'm thinking the patent benefit may have been realized by the stock previously? I'm going to say that the company would announce it if it was the first time around, could be something was tweaked, or went from submitted to approved, but carried the full benefit of the patent during review so the "news" impact may have happened previously. Something worth digging in to for a journey in to dry reading and the USPTO :)

    • ucisee Oct 1, 2013 4:54 PM Flag

      Biolase needs to move beyond just the dental market. I see growth in other sectors that Bioloase is attempting to expand into. ENT has strong potential. For dental, growth is with the fee for service practices and specialists. The practices that are insurance providers, very unlikely they will invest in high-end equipment this year. The insurance providers are spooked by changes in their reimbursements.

      On a positive note, I do believe fee for service practices will see a spike in patients. We are seeing that with patients that are sick and tired of going to dentists in their insurance plans.

      • 2 Replies to ucisee
      • It is true Biolase can't make selling dental lasers alone as they have proven burning $90M in cash trying in the past The question is, "Why will ENT be any better than dental?"

        If Biolase gave dentist an economic advantage I doubt it they'd still be losing money.

        Sentiment: Hold

      • YBM is flaky today. I'm not retyping my whole response. Peripheral expansion is BIOL's future, I feel that those other markets will surpass dental use, in addition it could help smooth out some of the current seasonal fluctuations; the medical market is a different kind of client.

        I think it says something about the quality of your work if patients are willing to go out of network for your services. The cream always rises to the top. There's a reason the public defender didn't make partner at a large firm, and it probably wasn't a conscientious objection rooted in philanthropic reasons ;)

    • Use it or lose it? Pony up a larger tax bill? Dentist aren't middle managers in large corporations. The choice they make is to allow Uncle Sam to pick up 1/3 of the cost of new equipment. Depending on how much they already spent, they may have to spread that tax savings out over up to 5 years.

      In any case they'll spend significantly more buying equipment than they'd pay in taxes.

      Sentiment: Hold

      • 1 Reply to lookingforatenbagger
      • The clear and obvious difference between you and me, is that I have real world business experience whereas you are just a blow hard, but we can discuss your lack of understanding for personal or corporate tax code if you want. Isn't it about time for you to wise up, even just a little bit? You know everything, and nothing, at the same time.

        A dentist with $100,000 of taxable income would realize a tax burden closer to 50%; federal withholding, social security, and medicare, both the employer and employee portions (referred to as self employment tax for sole proprietors), also state income tax, and local income tax, and UC conttibutions appropriate to the state(s) where business is conducted. The reality can be more complex with portions of the expendature residing above the SS theashhold of 113,000, and the threashold for the 28% federal bracket sitting around 88,000. A payor could end up with a blend of tax treatments when counting the tax savings.

        As for how it's done, I already mentioned the section 179 depreciation deduction in another post. It allows for full expensing of the purchase in the current taxable year provided there is income to offset the expense. It's up to them to decide if it's better to spread it out, or claim depreciation in the first year.

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