Bare Escentuals, Inc. (BARE)

Natural cosmetics are a hot item and Bare Escentuals has the name recognition and commitment to propel it ahead of others that haven't been so quick to enter this market.

This stock doesn't deserve to be this high. I don't see how its Q3 was much better than its Q2 ...

I think a panic sell will happen in the near future.

Because it Rocks

I'm very impressed with the financial performance of this company. They increased their cash position very well throughout the recession. I even have this in my real portfolio (but sadly, did not average down on when the stock was near $3 - thought the retail sector was going to hell).

So why the underperform pick? I think the stock has simply run up too high, too quickly. It's trading at a 52-week high in a sector which has lagged. I'm betting on a short-term pull back instead of a breakout.

I just entered into an actual covered call with BARE, check it out at financepuzzle.com

Impoving economy will push this stock higher. Wife loves the product. Customers will spend more freely/come back to the premium priced cosmetics.

The stock price has recovered most of the lost ground in the past one year while its financial performance was not upto mark with too much competition its core products and customers pulling back from discretionary spending. Going forward will be difficult to outperform the market.

Great brand.

Good Growth Potential

Picking this one as a 'trust the consumers' move... they seem to like the product.

MFI following, all have negative Fool ratios but impressive 3 month gains

Sales and income are down, expenses are up and they have a large inventory of finished product and haven't cut work in progress much.

I have teenage daughters who buy nothing but BARE products... In fact, everyone of their friends do the same.

Along side the green energy and products movement is a growing demand for natural foods and skin products. Almost every woman in the country wears an amount of cosmetics or skin care and beauty products. ie. nail polish, lotion, etc. With positive earnings, the company has shown it's survivability in the current market. Compared to a company like Revlon (REV) who posted 1.35B in revenue for Dec. 2008 (down from 2007) and ended up with a net income of 57.90M, Bare generated 565.2M of revenue but held onto a net income of 97.96M. 169% of REV.

Makeup will come back after this recession.

Low relative PE, good star ranking, PEG & 09 PE still below normal - bottom fishing 4/27 picks.

A make-up company that is capitalizing on the trend toward All-Natural products. This company started with direct sales via infomercials, but has now expanded to traditional retail locations. The customer base is loyal to a fault and is growing. Once the company works through the large debt taken on at its IPO, then cash will flow. That and at the time I picked this company, no one thought anyone would ever buy anything again. That wasn't true, and with make-up, its a necessity for many women. Lipstick sells in a depression and BARE Escentuals is a company that will make many feel better through these trying financial times - from customers to shareholders.

Screen pick

MFI Pick