Janet Paskin, reporter for SmartMoney, highlighted compelling stocks in the $12 billion vanity industry in a July issue article.  The article focused on Mentor, which makes 50% of breast implants in the U.S.  The stock fell from $48 to $29 and is sitting just over $30 today.  She says that analysts and investors think the market has underestimated the long-term prospects:

a. 348k breast implants in 2007, a 50% increase over 2000.

b. cosmetic procedures are increasing across the board

c. no tradedown procedure to take away business from Mentor, so market may not shrink much even in slower economic times.

d. FDA has approved newer and more expensive silicone implants and half of surgeons havent started using these yet, but they will

e. 2.9% dividend yield, healthy balance sheet

f. pipeline products- wrinkle smoother

Other stocks that she finds compelling are Advanced Medical Optics, Align Technology, Medicis, and Allergan.

Track Janet’s picks at:

http://www.trackthepros.com/categories.php?category_id=713