There are four stocks on the ASX for which fixing and brightening teeth is their game. How have these been performing in 2019?

Whenever we hear of research about high paying jobs (graduates and generally), dentists are usually among them. If you want to run a business though, the performance of ASX dentist stocks suggests dentistry only pays off if you contribute supplies rather than human labour.

Of the four stocks, the only one that has had a memorable year is SDI (ASX: SDI) which manufactures dental adhesives and accessories.

It is up over 40 per cent this year and its half-yearly after tax profit was $3.1 million – up 172 per cent.

But for the dentists, 2019 has been less memorable. Only Townsville-based 1300 Smiles (ASX: ONT) is up and only just – by 2 per cent.

In March, Baillieu tipped it to grow 25 per cent. Despite having to go into debt to acquire its purchases, Bailleu liked five things about the stock.

Namely, its track record of earnings per share growth, record of dividends, cost discipline, upside from its mergers and acquisitions and economic recovery in Queensland from the floods. The company escaped the floods relatively unscathed.

But Pacific Smiles (ASX: PSQ) has lost 10 per cent this year. This occurred despite the fact it recorded $11.2 million half-yearly pre-tax earnings, pays dividends and expects positive full year earnings.

It has 82 centres at the start of this year, and unlike 1300 Smiles, it has given less running commentary about acquisitions.

This morning we noticed Australian Ethical Investment topped up its holdings to 6.7 per cent this week.

But no news is better than bad news…

It’s bad enough when you anticipated a $1 million half yearly profit and it becomes a $2.3 million loss.

To make matters worse, Smiles Inclusive (ASX: SIL) spent most of 2019 plagued by infighting from its disgruntled ex bosses David Herlihy and Mike Timoney.

The saga is over now with the pair accepting their fates but the company required a capital raise and is taking cost reduction initiatives. It has lost 57 per cent in 6 months and 88 per cent in a year.

2020 Asset Management are confident things will turn around, it made up two thirds of the recent capital raise – spending $800,000 for a stake worth nearly 9 per cent.

Code Name Price (19 July 1pm) Market Cap 1 Year % Return 6 Month % Return
SDI SDI 0.89 $107.0M 73 41
ONT 1300 SMILES 6.27 $148.0M 2 3
PSQ PACIFIC SMILES GROUP 1.2 $182.4M -14 -10
SIL SMILES INCLUSIVE 0.12 $9.0M -88 -57
WordPress Tables Plugin