Syneron Makes Investors Look Good

This column was originally published on RealMoney on Aug. 11 at 1:36 p.m. EDT. It's being republished as a bonus for TheStreet.com readers.

Fans of Jim Cramer have heard and read him enthusiastically sing the praises of aesthetic device maker and distributor Syneron Medical(ELOS).

What has Cramer so excited?

As he said on his Aug. 8 "Mad Money" show, the vanity play is the big macro driver for Syneron and other laser companies. Americans constantly seem to be searching for ways to improve their looks, and the simpler the method, the better.

Add aging's effects on the body and the graying of Baby Boomers in the U.S., and you have plenty of folks looking for ways to improve their appearance. More and more of them are finding a solution in noninvasive aesthetic medical procedures.

According to a recent study by Medical Insight, 40 million noninvasive aesthetic treatments were performed worldwide in 2004. By 2006, that figure is expected to exceed 60 million. Around $650 million was spent last year on equipment needed to carry out these treatments, and the market is expected to grow as much as 25% annually over the next five years.

Syneron looks poised to be one of the biggest beneficiaries of this trend.

The company launched its first product platform, the Aurora, in December 2001. The Aurora is used by physicians for hair removal, rejuvenating the skin's appearance, and acne. In 2003, the Pitanga and Polaris were released, addressing the nagging issue of wrinkles.

In all, it now sells five products that cater to America's obsession for short cuts to looking glamorous, targeting a broad menu of noninvasive aesthetic treatments. Make that six. On June 13, Syneron received FDA approval for its VelaSmooth medical device, designed to temporarily reduce the appearance of cellulite.