May 21, 2018
The Insider Report

TRADE ALERT

The market has steadily pushed higher since our last buy recommendation two weeks ago.

And as usual, insiders have remained coy with their buys in this environment of strength.

But there are exceptions.

One of those exceptions is Santa Barbara-based Sientra Inc. (SIEN).

Sientra is a “medical aesthetics company” specializing in the manufacture of breast implants.

It revolutionized the industry a few years ago with its high-strength silicone gel implants.

Nicknamed “gummy bears,” they are preferred for their more natural feel and shape compared to traditional saline or silicone alternatives.

The implants also have lower risk of rupture or capsular contracture.

(Graphic courtesy of Sientra Investor Presentation – May 2018)

The American Society of Plastic Surgeons cited a “gummy bear revolution” and called Sientra’s implants  “an important advancement in silicone implant technology.”

But implants are not the only product in the pipeline.

Last year, the company launched miraDry – a non-invasive, FDA-cleared treatment to reduce underarm sweat and hair.

(Graphic courtesy of Sientra Investor Presentation – May 2018)

The procedure is typically performed by plastic surgeons – the same surgeons who buy Sientra’s breast implants.

So the company is be able to leverage these existing relationships to market and sell miraDry.

As a result, sales are growing rapidly.

(Graphic courtesy of Sientra Investor Presentation – May 2018)

And the market has taken notice...

After 6 months of decline, shares of Sientra have nearly doubled over the last 6 weeks.

But if the insiders are any indication, this could be just the beginning.

The firm just completed a public stock offering, and executives jumped on the chance to get a piece of it.

More than $8 million of the $107 million raised from the sale came directly from insider buys.

This overwhelming bullish sentiment from the executives who know the company best is a strong indication of what the future might hold for Sientra.

From a macro perspective, we see few threats to the cosmetic surgery sector.

Breast augmentation has been the #1 procedure for more than a decade, and all signs point to a continuation of this trend.

New technologies are also lowering the cost of cosmetic surgery, making it accessible to a larger faction of potential customers.

Sientra has support across the board.

Insiders are buying, investors are buying, and analysts maintain a unanimous BUY rating for the stock.

We recommend following their lead before shares advance any further.

Action to Take:  Buy Sientra Inc (SIEN) at the market. Use a protective stop at $13.50.

Speculators may consider the SIEN Oct18 $20 calls (.SIEN181019C20).Be sure to use a buy limit order between the bid/ask spread. It currently trades 1.35 x 1.60.

If you have questions, feel free to shoot us an email: support@hubertsenters.com.

All the Best,

Ross Givens

Editor, The Insider Report