Alcon And LENSAR: Why The Broken Merger Creates Two Different Buy Cases

Myriam Alvarez3.3K FollowersFollow5ShareSaveCommentsSummaryAlcon and LENSAR terminated their merger after the FTC failed to grant antitrust clearance within the required timeframe.For Alcon, this failed deal is mainly a strategic setback, not a meaningful financial blow.However, for LENSAR, the termination removed takeout support, but the company keeps the $10 million merger deposit.ALC also now looks more attractive at this valuation since I last covered it. Plus, it has scale, revenue growth, and strong cash generation.LNSR appears oversold with upside potential, but it's a microcap with cash burn, so it’s inherently much more speculative. Yet, I also feel the risk-reward equation here favors the bulls now. DuxX/iStock via Getty Images Alcon/LENSAR Merger Termination Alcon Inc. (ALC) and LENSAR, Inc. (LNSR) have canceled their proposed merger because the Federal Trade Commission (FTC) failed to grant antitrust clearance on time. For ALC, this failedThis article was written byMyriam Alvarez3.3K FollowersFollowMy name is Myriam Hernandez Alvarez. I received the Electronics and Telecommunication Engineering degree from the Escuela Politecnica Nacional, Quito, Ecuador, the M.Sc. degree in computer science from Ohio University, Athens, OH, USA, a graduate degree in Business Management from Universidad Andina Simon Bolivar, Quito, Ecuador, and the Ph.D. degree in computer applications from the University of Alicante, Spain.Disclosure: I collaborate professionally with Edgar Torres H, who is also an author on Seeking Alpha. Our analyses are conducted independently, and we adhere to Seeking Alpha's Shared Association Guidelines.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.