Bare Escentuals, Inc. (BARE)
The Company develops, markets and sells branded cosmetics, skin care and body care products under its i.d. bareMinerals, i.d., RareMinerals and namesake Bare Escentuals brands, and professional skin care products under its md formulations brand.
Recs
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.
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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.
Recs
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.
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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.
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During a recession a fad like this will have a tough time to make it. On top of that they are very leveraged...not a good time for that strategy.
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Low demand in this economical environment.
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Even if you believe their products are better (I don't) the long term trends suggest that even with non-cosmodentic mineral makeup this bear won't fish.
Just changed my pick. This company was first to market and their product is great, but they are only developing the distribution relationships that its competitors have had in place for decades.
The fad became a trend and this company will not be able to keep up now that other better known brands are offering essentially identical products at cheaper prices.
I make a better hamburger than McDonald's but I couldn't begin to compete in the hamburger retail market.
Recs
Too many cheaper/better quality competitors out there; market is getting saturated w/mineral makeup. I suspect Bare Escentuals is going to have to either reformulate or lower prices to survive in its particular sector. Hell, even Maybelline has come out w/a new mineral makeup line. When you can buy these things for a fraction of what the name brand charges at your local CVS/Target, the middle class market is going to fall away from the pricier brands like BE.
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Bare Escentuals is the developer of a fad product, there is no long term brand strategy with the exception of being acquired by the likes of L'Oreal or Unilever. Sadly this will only happen if suddenly the emperor which wears no clothes finds a tailor.
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going lowing
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Going short...stock has been on the decline for almost a year
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I think this stock has a lot of potential. But I don't believe that potential will be realized in the next year or so. Due to the economy and consumers tightening their belts, I think high priced skin care will be something that gets put on hold.
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wOMEN LOVE TO SHOP
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IPO started out too hight & to fast to keep up with earnings.

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