Is SmileDirectClub a Risky Buy?

SmileDirectClub (NASDAQ: SDC) first began trading last September, and the stock's price today is nowhere near the $23 per share at which it IPO'd. In fact, it's lost more than half of its value since then, and things could continue to get worse for shareholders from here on out. The teledentistry stock might sound like an ideal one to hold during a pandemic, but that may not be the case. Here's why SmileDirectClub may be in trouble:

The main selling points of SmileDirectClub's teeth-straightening products are that they cost less than traditional braces and patients don't need to make multiple visits to see a dentist. With the company's at-home kit, patients can even make impressions of their own teeth without needing to visit a SmileShop for an in-person scan.

However, there's been a lot of publicity of late surrounding SmileDirectClub's products and how effective they are. The Nashville-based company has more than 2,300 customer complaints on the Better Business Bureau website, many relating to the quality of the products and how well they fit.

Continue reading

Source Fool.com