Iridex Lights Up

After a tough 2020, IRIDEX Corporation (IRIX), a provider of ophthalmic laser-based medical products for the treatment of glaucoma and retinal diseases, has been on fire. Since December 14, the stock has more than doubled from $1.64. Today alone, the stock has been up by as much as 35%+ including the after hours session. The movement in IRIX today was prompted by two catalysts:

(1) An excellent Seeking Alpha article by “Analystman,” the Managing Member of DV Advisors, LLC. In the article, Analystman highlighted IRIX’s future potential with its innovative Cyclo G6 laser system and MicroPulse P3 delivery device, which was recently included in the European Glaucoma Society Terminology and Guidelines for Glaucoma. Further, the author noted IRIX’s relatively cheap valuation compared to industry peers.

(2) Following the market close, IRIX announced preliminary Q4 and FY 2020 results. Among other significant tidbits, IRIX impressed with its lack of cash burn throughout 2020, especially in light of industry disruptions related to Covid-19. In addition, the company stated that Q3 and Q4 resulted in “record quarterly sales” for its Cyclo G6 laser system, which clearly bodes well for the company in 2021 as physicians will use the related consumables to treat their patients.

Disclosure: I am long IRIX and may buy or sell shares at any time.