This article was written by:
Dr. Lipa Roitman, Co-Founder & CTO at I Know First..
Michael Shpits, Financial Analyst at I Know First.
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The article was written by Chloe Peng, Analyst at I Know First., Master of Science of Finance candidate at Brandeis University.Read The Full Premium ArticleIn this forecast evaluation report, we will examine the performance of the forecasts generated by the I Know First AI Algorithm for assets from the short term signals Options universe provided as part of the Options Package, which is sent to our customers on a daily basis. Our analysis covers the time period from 1 January 2019 to 14 July 2019. We will start with an introduction to our asset picking and bench marking methods and then apply it to the Short Term Signals Options universe covered by us in the Options Package. We will then compare returns based on our algorithm with the benchmark performance over the same period. Below, we present our key takeaways from applying signal and volatility filters.
Align Technology is a global medical device company with industry-leading innovative products such as Invisalign clear aligners, iTero Intraoral scanners, and OrthoCAD digital services that help dental professionals achieve the clinical results they expect and deliver effective, cutting-edge dental options to their patients.
Source: aligntech.com
ALGN saw a drop of -26.44% in its stock over the past 14 days. Align Technology is a manufacturer of 3D digital scanners and clear aligners used in orthodontics. The Company offers a system that corrects the misalignment using a series of clear and removable appliances that move teeth to a desired final position. However, many of the company’s patents have expired, as of December 17, and it is now facing fierce competition in the market. Although they are still the market leaders this has not provided investors with the confidence that ALGN is a company with a long-term product.
On October 24, 2018, Align and management announced the Company’s 3Q 2018 earnings. They reported clear-aligner sales of $427.1 million, up 25% over the prior-year period but a sequential decline of 1.4%. This drop stemmed primarily from lower average selling prices (“ASPs”) in the U.S. and internationally. Align and management blamed the lower ASPs in part on promotional discounts. This news drove the price of Align shares down as much as $87.71, or about 30%, during intraday trading on October 25, 2018. “We’re focused on investors’ losses and on the extent to which management’s statements concerning competition, sales, and promotions were misleading,” said Hagens Berman partner Reed Kathrein LLP, the Law firm representing ALGN.
This chart below shows the algorithmic forecast made on these top ten long and short options and the results of the forecast. As seen ALGN was included in the top ten short options.
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Align Technology, Inc. (ALGN) incorporated on April 3, 1997, designs, manufactures and markets a system of clear aligner therapy, intra-oral scanners and computer-aided design/computer-aided manufacturing (CAD/CAM) digital services used in dentistry, orthodontics and dental records storage. The Company operates through two segments: Clear Aligner segment and Scanner and Services (Scanner) segment. The Clear Aligner segment consists of its Invisalign System, which includes Invisalign Full, Teen and Assist (Comprehensive Products), Express/Lite (Non-Comprehensive Products) and Vivera Retainers, along with its training and ancillary products for treating malocclusion (Non-Case). The Scanner segment consists of intra-oral scanning systems and other services available with the intra-oral scanners that provide digital alternatives to the traditional cast models. The Scanner segment includes its iTero scanner and OrthoCAD services. iTero scanner is used by dental professionals, and labs and services for restorative and orthodontic digital procedures, as well as Invisalign digital impression submission
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