Medicis Pharmaceutical Corp (NYSE:MRX)

12/13

Magic Formula + Insider buying

I bought this stock the other day and forgot to add it to my list. I think the company will achieve double digit growth in earnings on the next couple of years. It could even be an acquisition target for a big pharma company.

Due to high demand of Triaz, Ziana, and Solodyn sales have been up and should continue to keep going up. They also have a strong group of products to help reduce acne. Medics continue to spend a lot of time and money to develop new products and improve their already strong list of products, this should help them keep increasing their earnings in the future. They currently have a great balance sheet, with a lot of cash and not much debt, this could be used for a number of different things but most likely will be used to increase their R&D.

New 52 week low. Double down on losing position.

Going long on pimples and wrinkles. They cover the bases from teens to pre-geezers.

Cash/share = price

Slowed growth in earnings due to increased expenses with LipoSonix acquisition. Whether that business takes off or not, there is very good value here.

magicformulainvesting.com screen at $153M market cap, top 25 companies on June 26, 2008

Pure speculation on the Liposonix acquisition. Surgery free fat removal has huge potential if FDA approves. If not, at least they get international exposure because the process is already approved in Europe.

magic formula pick. buy@22.78 and check in a year.

Biotechnology play - great intrinsic value ratio

$25+/share

Medicis has been given a strong buy recommendation by Standard and Poor's analysts citing their new products for acne treatment and their strong market share in dermal fillers (Restylane and Perlane). From someone in the trenches of treating acne, I have been underwhelmed by the new Ziana and Solodyne products. These don't seem like the right fuel to launch a rocket to soaring profits. The Restylane product will be getting more competition from Juvederm and Radiesse as well as other dermal fillers in the pipeline.

Reloxin filing in Q4 plus Ziana and Perlane growth will drive earnings and stock higher.

S&P Fair Value @28.50

dermatology products treating acne, acne-related conditions, fungal

infections, skin discoloration, and inflammatory and hyperproliferative skin diseases, such as psoriasis

and topical dermatitis.

People are increasingly concerned with appearance and willing to spend more money on anything that affects the skin.

Medical spending continues in a downturn too.

New, fairly affordable skin product now widely available. Replaces surgery for those who can't afford a plastic surgeon. Profits should take place by 4th quarter.

Vanity play for all those retiring bankers.

you know who you are...