Image Shown: SmileDirectClub has come under tremendous regulatory fire of late, which has aggressively pressured shares of SDC.
We covered SmileDirectClub back in September 2019 shortly after its IPO. Since going public at $23 per share (the unconventional orthodontics company’s shares fell aggressively during their first day of trading), shares of SDC have tanked with an eye towards growing regulatory concerns and related obstacles. We don’t think catching a falling knife is a wise idea and see SmileDirectClub’s problems continuing for some time. SmileDirectClub is standing its ground and has been highlighting the many customers it has served, at a much cheaper cost than traditional orthodontist offerings, but the negative press alone will likely make it much tougher to grow going on a fundamental basis given how this negatively impacts its marketing and advertising campaigns. Should SmileDirectClub lose its ability to operate in California, that would have a profound impact on its trajectory.
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