DermTech (NASDAQ:DMTK) is one of several companies that have gone public via a merger with a special purpose acquisition company (SPAC). The stock has been a huge winner so far this year. In this Motley Fool Live video recorded on Feb. 17, 2021, Fool.com contributors Keith Speights and Brian Orelli talk about why DermTech is a good stock to buy right now.
Keith Speights: We have maybe one more minute left. Let's get to another viewer question that's at the top of Slido. Aaron asks thoughts on DermTech; the ticker there is DMTK. Brian, I have some thoughts but I'll let you go first if you've...
Brian Orelli: I think you have to go first because this is not a company that I grow on.
Speights: OK. I actually bought shares of DermTech last week, so I can reveal that since the disclosure period has passed.
DermTech is a genomics company that specializes in skin cancer. What they do is instead of biopsies where the doctor cuts out skin and sends it off to have an analyzed, what DermTech has is an adhesive patch, they put over the area and then you rip the patch off. It gets samples from the lesion.
They do a pretty quick turnaround genetic analysis, very accurate in determining whether or not a person has skin cancer and it's cheaper than doing regular biopsy. You might say, at least checks off two of the boxes of better, faster, cheaper, and maybe there is some argument about being even better.
I like the stock, the market cap at least this morning, I'm going to pull it up really quickly. Market cap for DermTech is currently around $1.6 billion. They have a big addressable market. I think it's in the neighborhood of $10 billion in the skin cancer arena. I think DermTech has a lot of room to run, and that's why I bought the stock last week.