SmileDirectClub Execs Focused On Long-Term Growth, Not Big First Day Drop
SmileDirectClub Inc (NASDAQ: SDC) executives said Thursday they’re focused on building long-term value for investors and aren’t overly concerned about the company’s disappointing opening on its first day of trading.
The company, which was founded in 2014 by Michigan residents Jordan Katzman and Alex Fenkell, began trading Thursday on the Nasdaq, and the stock quickly dropped by more than 15%.
“This is day one,” SmileDirectClub Chief Financial Officer Kyle Wailes said on CNBC. “We’re focused on 12 months, 24 months, and really creating long-term fundamental value for our investors.”
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“How it priced today, I don’t think, is going to dictate what we’re doing here,” added Fenkell.
Wailes and Fenkell said the company has strong affinity with customers, called members at the company, some of whom take a year or more to decide on whether and how to get the dental alignment work the company offers through a network of orthodontists and dentists.
The company has served more than 750,000 customers so far, Wailes said, with “very positive consumer sentiment overall.”
SmileDirectClub opened at $20.55 per share. At publication time, the stock was trading down 15.6% at $19.40 per share.
Shares of Align Technology Inc (NASDAQ: ALGN), which is the maker of competitor Invisalign, traded down 2.4% to $175.33 per share.
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