Obagi Medical Products, Inc. (NASDAQ:OMPI)

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going with motley fool 5star on this one...schwab rates "c"

After a check-up from your skin Dr. he/she states you would benefit from this product only avail. in my office. What would you say? Most will buy and try to then return to the same Dr. who compliments your new found youth! Solid balance sheet with exllnt. history to boot up for this econ. downturn. People are vain....stock-up.

Obagi has had an earnings dip this year, but it's hard to hold that against them in this economy. Before that, they've had very strong earnings growth and fantastic return on equity and invested capital.

The biggest negative is the elasticity of their products compared to those of other pharmaceutical companies. Their largely prescription skin-care products are almost exclusively cosmetic in use. A recession, plus competition from over-the-counter products, could put a serious dent in sales as consumers cut back on spending.

On the other hand, for Boomers, getting rid of wrinkles might not seem so "discretionary". Also, their immaculate balance sheet and strong cash flow means that Obagi is in a very strong position to survive any lean times. At around $7 per share, this stock holds great value and will probably pop big with even a moderate earnings recovery. Bullish technicals reinforce this as a buy right now.

Fool Article (3 More Outrageously Cheap Stocks - 10/7/08)

No Debt! Key to growth in a company and undervalued. Will double in the next year after recent drop!

What the heck? I need points!

Strong fundamentals are currently undervalued.

Blah blah blah. You can talk about numbers, and you may be right/wrong about the price

***Bottom line***
My mom uses their stuff like it's crack. Her friends use their products like they're on crack. Every week that goes by, they get more and more of their friends to use the products.

Benefit overweighs the risk. I do not think FDA investigation will start until next year if there is any at all.

This company used to be in the 20s. It missed earnings a couple times and was oversold like you wouldn't believe (down to 7 dollars). Based on the future prospects of the company and the great valuation, I picked up some shares in real life at 7 dollars. I still think it is undervalued at 9...but it carries some risk.

I like their product strategy (prescription strength skin care). I figure with the conditions for skin in the world only getting worse and the superficiality of people only increasing over time, their products will be in high demand. They are launching a new product in the 4th Q.

Mgmt is strong and charting below S&P

NO DEPT "Dept free way to be."

Just bought some, so I thought I should list it here. I believe this is a very attactive price point for a company that should recover well when the economy improves.

Whipped up stock, with rich balance sheet and an attractive valuation. I have friends that spend lots of coin on these kinds of products and I don't see that changing. There are some growing pains with any new public company, especially in this market, but they will work through those. The online reviews that I glanced at seem mostly positive although there are a few complaints (a lot around cost). But overall I think it's worth more than $8 per share.

Are you kidding me???? NO DEBT and accumulating cash each quarter, this is the balance sheet that ALL companies which they had. Even with mediocre earnings which they sand bagged for next quarter (huge upside). This is a possible takeover target for a company such as Allergen. Regardless of a possible acquisitions, OMPI WILL BE TRADING AT $16/share mid-June!!

OMPI has missed the last 2 quarters. This is a really humbling experience. Now the market under estimate and OMPI will buckle down to put up a good number. They have great fundamentals, so management has it in them.

Vanity among the boomers bodes well for the industry. If $8 isn't the bottom, it is close enough for me.

just a really god buy