This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cosmetic Surgery Stocks Keep Stiff Upper Lip

Stocks in this article: AGN MNT MRX

"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

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs