Is Cynosure’s Stock Still a Buy After This Big News?

With shares of Cynosure (NASDAQ:CYNO) trading at around $24.44 is CYNO an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock’s Movement

Cynosure’s stock had a big run-up yesterday after the FDA approved PicoSure, a new tattoo removal workstation that also has the ability to remove benign pigmented lesions. Cynosure is on quite a roll considering their anti-wrinkle device was approved only five months ago.

PicoSure will be sold to dermatologists and plastic surgeons around the world. This is big news considering Cynosure states that 20% of people with tattoos want their tattoos removed. The effectiveness of PicoSure is also excellent. PicoSure has proven to remove 80% of all tattoos. It has also proven to remove 94% of blue and green ink. The only potential negative here is that the study was only based on 22 participants.

Catalysts are critical to discovering winning stocks. Check out our newest CHEAT SHEET stock picks now.

It seems as though Cynosure is only getting started. This company also has laser and light-based energy sources to treat hair removal, unwanted fat, cellulite, anti-aging, and more. That probably covers at least half the population. Yes, that’s on a global scale. The market here is enormous.  

E = Equity to Debt Ratio Is Strong

If you’re looking for negatives for Cynosure, you will likely find one or two, but it’s not going to be in debt-to-equity or on the balance sheet. Let’s take a look at Cynosure as well as two other companies in the industry, which are GenMark Diagnostics (NASDAQ:GNMK) and ZELTIQ Aesthetics (NASDAQ:ZLTQ).



Long-Term Debt



$79.48 Million

$807 Thousand



$53.55 Million

$919 Thousand



$51.19 Million



T = Technicals on the Stock Chart Are Strong

Cynosure has been on a tear over the past three years. While there have been some speed bumps, the trend has been up. With new approvals and a large untapped market, this trend should continue barring an economic collapse.

1 Month


1 Year

3 Year

















At $24.44, Cynosure is currently trading slightly lower than its 50-day SMA of $25.12. It’s also trading slightly lower than its 100-day SMA of $25.16. And it’s trading significantly higher than its 200-day SMA of $17.13.