Hello Friends! The market SEEMS like it may want to go a little higher in here...but I am not holding my breath. As always, please remember to do your own work on these stocks on the website, and consult with your investment advisor as I am an amateur investor who likes to talk about stocks...and only your investment advisor knows if these selections are timely, appropriate, or even wise for you!
I came across INAMED (IMDC)today as I was looking at the market movers. I do not have any shares or leveraged positions in this stock. As I write, IMDC is trading at $58.03, up $2.85 or 5.16% on the day. According to the Yahoo "Profile", INAMED "...has three principal product lines: breast aesthetics, consisting primarily of breast implants and tissue expanders sold largely for use in plastic and reconstructive surger; facial aesthetics, consisting primarily of collagen and other dermal fillers sold largely to dermatologists and plastic surgeons, and obesity intervention, consisting of products for use in treating severe and morbid obesity."
What drove the price of the stock higher today, was an earnings report released yesterday after the close. For the first quarter 2004, ended March 31, 2004, INAMED reported sales increasing 20% to $90.8 million from $75.5 million last year, diluted earnings up 40% to $.49/share compared to $.35/share last year. These are pretty nice numbers!
If we look at the "5-Yr Restated" financials on Morningstar.com, we can see that IMHC has grown its revenues from $189.3 million in 1999 to $332.6 million in the trailing twelve months.
Morningstar shows an erratic earnings record with EPS dropping from $1.35 in 1999 to $.64 in 2001, but increasing since then to $1.51 in the trailing twelve months.
Free cash flow has been solidly positive and increasing from $14 million in 2001 to $63 million in the trailing twelve months.
Balance sheet? Looking at the numbers on Morningstar.com is reassuring with $80.5 million in cash and $131.6 million in other current assets as opposed to $80.2 million in current liabilities and $69.3 in long-term liabilities.
Valuation? Looking at the "Key Statistics" on Yahoo we can see the that the trailing p/e is 35.11 but the PEG (5 yr expected) is nice at 1.25. Price/sales a bit rich at 5.88.
There are 35.44 million shares outstanding with 28.80 million of them that float. There are quite a few shares out short; Yahoo reports 1.88 million shares representing 6.51% of the float or 3.933 trading days. We may be in the midst of a little "squeeze" on these short sellers.
No cash dividend is paid and the last stock split was just a few months ago: a 3:2 split in December, 2003.
Technicals? IMDC has a nice "Point & Figure" chart. The stock broke through a resistance level in October 2003 at about $19.50/share and has headed strongly higher since.
Overall, I like this stock a lot. In fact, if I can justify it, I might be a purchaser of stock in this company. But, I would REALLY like to wait for a sale of a stock on a GAIN before dipping my toes any further into equities. Thanks so much for stopping by! If you have any questions, comments, or words of encouragement, please feel free to comment ON the blog or email me at bobsadviceforstocks@lycos.com
Bob