Doma (US:DOMA) Prnewswire·2025-01-15 13:05Core Viewpoint - DOMA Perpetual Capital Management LLC urges InMode Ltd. to execute a tender offer for 30% of the company and implement a 10% share buyback in 2025 to restore investor confidence and address the company's undervaluation [1][2][3]. Financial Position - InMode reported $684 million in cash at the end of Q3 2024, with an estimated current cash balance of about $640 million [2][7]. - The company has no debt and is projected to generate approximately $150 million in free cash flow in 2025 [2][3]. - InMode's market capitalization is currently trading below its cash on hand plus projected three-year cumulative free cash flow, marking the lowest valuation in the company's history [2][7]. Management and Governance Issues - The CEO's recent actions, including the firing of key executives, have created instability and contributed to declining sales, particularly in North America, which accounts for over 50% of revenues [5][6]. - The Board has been criticized for failing to diversify production away from Israel, which poses risks due to geopolitical tensions [6][10]. - There is a call for the Board to take immediate action to return cash to shareholders and improve oversight of management decisions [4][9]. Proposed Action Plan - Immediate execution of a 30% tender offer and a 10% buyback in 2025 is recommended to utilize the company's cash effectively [3][10]. - The company should appoint new Heads of Sales for all relevant regions and provide quarterly sales updates to restore investor confidence [10]. - A small dividend of no more than $15 million in 2025 is suggested to enhance shareholder returns [10]. - The company should reduce cash levels to below $100 million and establish a revolving credit line for emergencies [10].