This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cosmetic Surgery Stocks Keep Stiff Upper Lip

"Deceleration in [breast] augmentations continues, putting fiscal 2010 estimates at risk," says a new report by Jose Haresco, of Brean Murray Carret. He has a hold rating on the stock and doesn't own shares.

Although U.S. breast implant procedures rose steadily between 1997 and 2007, Haresco forecasts that the number will decline 3% this year and another 2% next year.

He sees a promising "long-term growth opportunity" for Mentor's implant business, but he warns that the "current financial and economic crisis will continue to exert pressure on the market."

Maxim Group analyst Anthony Vendetti predicts there could be a rebound in U.S. breast implants within the next 12 months even though the outlook right now is "bleak." Vendetti has a buy rating on Mentor and doesn't own shares.

Mentor and Allergan have a duopoly in the U.S. breast implant market, and both have benefitted from the Food and Drug Administration's ruling in 2006 that silicone breast implants, which are more expensive than saline, could be used for cosmetic purposes. Previously, the U.S. required cosmetic implants to use saline.

Both companies also sell their implants foreign markets, primarily Europe, where they compete with several companies. Eventually, Haresco believes the U.S. will look like other markets in which silicone implants account for 75% of breast augmentation procedures.

Mentor is trying to diversify. Its other revenue now comes from skin-care products and liposuction equipment, with more dermatology offerings, including a Botox-like drug. Allergan owns a healthy portion of the skin game thanks to Botox. For the first half of 2008, Botox produced $663 million in sales, up 15% from the year-ago period, and accounted for 30% of the total.
2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
MRX $0.00 0.00%
AGN $216.57 -0.71%
AAPL $95.38 1.90%
FB $117.64 -0.78%
GOOG $695.90 -0.33%


Chart of I:DJI
DOW 17,782.48 -108.68 -0.61%
S&P 500 2,063.17 -18.26 -0.88%
NASDAQ 4,771.4650 -46.1290 -0.96%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs