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STAAR Surgical (STAA): Less Than Meets the Eye
Initiation Report: August 11, 2020
J Capital Research ("J Cap") is a stock-research company. J Cap has analyzed the U.S.-listed company STAAR Surgical Company (“STAA”) and is hereby publishing the outcome and the conclusions of our analysis, based on publicly available information. We may be short shares of STAA, and, for this reason, there might be a conflict of interest.
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We think that STAAR Surgical has overstated sales in China by at least one-third, or $21.6 mln. That would mean that all of the company’s $14 mln in 2019 profit is fake.
A single Chinese distributor accounted for 43% of STAAR’s total sales and 71% of its growth in 2019 and over half in Q2 this year. In the 2019 10K, STAAR reports: “One customer, Shanghai Langsheng [sic], our China distributor who sells in to China and Hong Kong, accounted for more than 43% of our consolidated net sales during fiscal 2019.” Unfortunately, the Chinese numbers (which are not audited) are unreliable. |
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