The following video is from Monday's MarketFoolery podcast, in which host Chris Hill, along with analysts Jason Moser and Matt Argersinger, discuss the top business and investing stories of the day.
In his annual letter to shareholder, Amazon.com (NASDAQ: AMZN ) CEO Jeff Bezos defended the company's investments in its Prime and Kindle businesses. In FY 2012, Amazon reported a net loss of $39 million. Will Amazon's investments pay off? Is Amazon's business model superior to Apple's (NASDAQ: AAPL ) ? What numbers should investors be watching when Amazon reports earnings next week? In this installment of MarketFoolery, our analysts talk about the future of Amazon.
Everyone knows Amazon is the king of the retail world right now, but at its sky-high valuation, most investors are worried it's the company's share price that will get knocked down instead of its competitors'. The Motley Fool's premium report will tell you what's driving the company's growth, and fill you in on reasons to buy and reasons to sell Amazon. The report also has you covered with a full year of free analyst updates to keep you informed as the company's story changes, so click here now to read more.
Hot Heal Care Stocks To Own For 2015: Staples Inc.(SPLS)
Staples, Inc., together with its subsidiaries, operates as an office products company. The company offers various office supplies and services, office machines and related products, computers and related products, and office furniture under Staples, Quill, and other proprietary brands. It also provides copy and print services to retail and delivery customers, as well as technology services through its EasyTech business. The company sells and delivers office products and services directly to businesses and consumers through Internet retail, including Staples.com and Quill.com, as well as through contract sales force, direct mail catalog business, and retail stores. As of January 28, 2012, it operated 2,295 retail stores in 48 states and the District of Columbia in the United States; and 10 provinces and 2 territories in Canada, as well as in Belgium, Finland, Germany, the Netherlands, Norway, Portugal, Sweden, the United Kingdom, China, Argentina, and Australia. The company also operated 124 distribution and fulfillment centers in 29 states in the United States; 7 provinces in Canada; and in Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, the United Kingdom, China, Argentina, Brazil, and Australia. Staples, Inc. was founded in 1986 and is based in Framingham, Massachusetts.
Advisors' Opinion:- [By Jake L'Ecuyer]
Top losers in the sector included Dick's Sporting Goods (NYSE: DKS), down 16.6 percent, and Staples (NASDAQ: SPLS), off 12 percent.
Top Headline
Staples (NASDAQ: SPLS) reported a drop in its fiscal first-quarter profit. Staples posted its quarterly earnings of $96.2 million, or $0.15 per share, versus $169.9 million, or $0.26 per share, in the year-ago period. Excluding certain items, it earned $0.18 per share. Its sales declined 2.8% to $5.65 billion. However, analysts were expecting earnings of $0.21 per share on revenue of $5.61 billion. Staples expects Q2 adjusted earnings of $0.09 to $0.14 per share, versus analysts' estimates of $0.15 per share. - [By Paul Ausick]
Big Earnings Movers: J.C. Penney Co. Inc. (NYSE: JCP) is up 8.4% at $9.44 after a lousy report but some hopeful remarks. Lowe�� Companies Inc. (NYSE: LOW) is down 6.2% at $47.34 after disappointing results and a weakish outlook. Staples Inc. (NASDAQ: SPLS) is down 1.6% at $15.10. Deere & Co. (NYSE: DE) is up 2.1% at $84.53 even though the outlook is a bit weak.
- [By Paul Ausick]
Nasdaq Composite component Staples Inc. (NASDAQ: SPLS) saw its share price dive 15.22% today after the company reported weak results and said it would close 225 stores. The stock will close around $11.37 in a 52-week range of $11.16 to $17.30 (a new 52-week low). Volume was almost 8-times higher than the daily average of around nearly 9 million shares traded.
10 Best Gas Utility Stocks To Own For 2014: Geospace Technologies Corp (GEOS)
Geospace Technologies Corporation, formerly OYO Geospace Corporation, incorporated on September 13, 1997, designs and manufactures instruments and equipment used in the acquisition and processing of seismic data, as well as in the characterization and monitoring of producing oil and gas reservoirs. The Company also manufactures and distributes thermal imaging equipment and dry thermal film products to a variety of markets including the screenprint, point of sale, signage and textile markets. As of September 30, 2011, OYO Corporation U.S.A. (OYO USA) owned approximately 20.3% of the Company�� common stock. The Company operates in two segments: Seismic and Thermal Solutions. The seismic segment of its business accounts for the majority of its sales. Its thermal solutions product technologies were developed for seismic data processing applications.
Seismic Products
Geoscientists use seismic data primarily in connection with the exploration, development and production of oil and gas reserves to map hydrocarbon bearing formations and the geologic structures that surround them. The Company provides many of the components of seismic data recording systems, including data acquisition systems, geophones, hydrophones, multi-component sensors, seismic leader wire, geophone strings, connectors, seismic telemetry cables and other seismic related products. Its marine seismic products help steer streamers while being towed and help recover streamers if they become disconnected from the vessel.
The Company has developed permanently installed high-definition reservoir characterization products for ocean-bottom applications in producing oil and gas fields. It also produces a retrievable version of this ocean-bottom system for use on fields where permanently installed systems are not appropriate or economical. Seismic surveys repeated over selected time intervals show dynamic changes within the reservoir and can be used to monitor the effects of production. In addition, it produc! es seismic borehole acquisition systems which employ a fiber optic augmented wireline capable of high data transmission rates. These systems are used for several reservoir characterization applications, including an application pioneered by it allowing operators and service companies to monitor and measure the results of fracturing operations.
The Company designs and manufactures power and communication transmission cable products for offshore applications and market these products to the offshore oil and gas and offshore construction industries. These products include a variety of specialized cables, primarily used in deepwater applications, such as remotely operated vehicle (ROV) tethers, umbilicals and electrical control cables. These products also include specially designed and manufactured cables, including armored cables, engineered to withstand harsh offshore operating environments. In addition, it designs and manufactures industrial sensors for the vibration monitoring, security and earthquake detection markets. The Company also design and manufacture other specialty cable and connector products, such as those used in connection with global positioning products and water meter applications.
Its seismic product lines consists of land and marine nodal seismic data acquisition systems, high-definition reservoir characterization products and services, geophones and hydrophones, including multi-component geophones and hydrophones, seismic leader wire, geophone string and acquisition system connectors, seismic telemetry cables, marine seismic cable retrieval and steering devices and specialized data acquisition systems targeted at conventional and niche markets.
The Company�� high-definition reservoir characterization products include the HDSeis product line and a suite of borehole and reservoir characterization products and services. Its HDSeis System is a high-definition seismic data acquisition system with architecture that allows it to be configured as a bo! rehole se! ismic system or as a subsurface system for both land and marine reservoir-monitoring projects. Its multi-component seismic product developments include an omni-directional geophone for use in reservoir monitoring, a compact marine three-component or four-component gimbaled sensor and special-purpose connectors, connector arrays and cases. Its products used in marine seismic data acquisition include its marine seismic streamer retrieval devices (SRDs). Its SRDs, which are attached to the streamer cables, contain air bags which are designed to inflate automatically at a given depth, bringing the severed streamer cables to the surface. It also produces seismic streamer steering devices, or birds, which are finlike devices that attach to the streamer cable. These birds help maintain the streamer cable at a certain desired depth as it is being towed through the water.
The Company competes with CGGVeritas, ION Geophysical, INOVA, Amphenol Corporation, Fairfield Industries, Petroleum Geo-Services ASA, Avalon, Mitcham Industries, Inc. and Seismic Equipment Solutions.
Thermal Solutions Products
The Company thermal printers include both thermal imagesetters for graphics applications and thermal plotters for seismic applications. In addition, its thermal solutions products include direct-to-screen systems, thermal printheads, dry thermal film, thermal transfer ribbons and other thermal media. Its thermal imaging solutions produce images ranging in size from 12 to 54 inches wide and in resolution from 400 to 1,200 dots per inch. It markets its thermal imaging solutions to a variety of industries, including the screen printing, point-of-sale, signage, flexographic and textile markets. It also distributes private label dry thermal media for use in its thermal printers and direct-to-screen systems. In addition, the Company is engaged in efforts to develop new lines of dry thermal film and ribbon in order to improve the image quality of its media for use with printheads.
The! Company thermal solutions products include thermal imagesetters for graphics applications and thermal plotters for seismic applications. In addition, its thermal solution products include thermal printheads and thermal media products. It markets these products to a variety of industries, including the screen print, point of sale, signage and textile markets. It also sells these products to seismic customers.
The Company competes with KIWO USA, Inc., Colour Scanned Technology and iSys Group.
Advisors' Opinion:- [By Seth Jayson]
Geospace Technologies (Nasdaq: GEOS ) reported earnings on May 2. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q2), Geospace Technologies whiffed on revenues and whiffed on earnings per share.
10 Best Gas Utility Stocks To Own For 2014: Seaspan Corporation(SSW)
Seaspan Corporation owns and operates the containerships that are engaged in the deep-sea container transportation business in Hong Kong. The company charters its containerships pursuant to long-term, fixed-rate time charters to various container liner companies. As of December 31, 2009, it owned and operated a fleet of 42 containerships. The company was incorporated in 2005 and is headquartered in Majuro, the Marshall Islands.
Advisors' Opinion:- [By Jack Adamo]
Predictably, Seaspan (SSW) suffered a big drop in normalized EPS for 2013, due to the conversion of all its Class A preferred stock to common stock, plus another secondary common stock offering, which, together, increased the common stock share count by 33%.
- [By Jake L'Ecuyer]
Equities Trading UP
Seaspan (NYSE: SSW) shot up 10.52 percent to $21.75 after the company announced the termination of its public offerings of common shares and convertible notes. - [By Jake L'Ecuyer]
Equities Trading DOWN Shares of Seaspan (NYSE: SSW) were down 9.82 percent to $21.13 after the company priced 3,500,000 equity offering at $22.00 per share.
- [By Brian Pacampara]
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, containership operator Seaspan (NYSE: SSW ) has earned a coveted five-star ranking.
10 Best Gas Utility Stocks To Own For 2014: Iconix Brand Group Inc (ICON)
Iconix Brand Group, Inc. (Iconix), incorporated in 1978, is a brand management company engaged in licensing, marketing and providing trend direction for a portfolio of consumer brands. The Company is the owner of the brands through its wholly owned subsidiaries: Candie's, Bongo, Badgley Mischka, Joe Boxer, Rampage, Mudd, London Fog, Mossimo, Ocean Pacific/OP, Danskin/Danskin Now, Rocawear, Cannon, Royal Velvet, Fieldcrest, Charisma, Starter, Waverly, Zoo York and Sharper Image, which it licenses directly to retailers (herein referred to as direct-to-retail), wholesalers and suppliers for use a range of product categories, including apparel, footwear, sportswear, fashion accessories, home products and decor, beauty and fragrance, and, in the case of Sharper Image brand, consumer electronics and novelty products. In July 2011, the Company, through its wholly owned subsidiary ZY Holdings, purchased the Zoo York brand and related assets from its IPH Unltd joint venture, increasing its ownership in the Zoo York brand from 51% to 100%. In October 2011, the Company acquired Sharper Image. In December 2012, the Company acquired Umbro brand and related intellectual property assets from NIKE Inc. In February 2013, the Company acquired a 51% stake in the Buffalo David Bitton brand. In February 2013, the Company acquired Lee Cooper. In May 2013, the Company acquired 49% interest in IP Holdings Unltd LLC (IPHU), owner of the Ecko Unltd. and Marc Ecko Cut & Sew.
Scion, a joint venture in which the Company has a 50% investment, owns the Artful Dodger brand; Hardy Way, a joint venture in which the Company has an 85% investment, owns the Ed Hardy brand; IPH Unltd, a joint venture in which the Company has a 51% investment, owns the Ecko portfolio of brands; MG Icon, a joint venture in which the Company has a 50% investment, owns the Material Girl and Truth or Dare brands; and Peanuts Holdings, a joint venture in which the Company has an 80% investment, owns the Peanuts brand and characters through its whol! ly owned subsidiary Peanuts . Products bearing the Company�� brands are sold across a range of distribution channels through direct-to-retail and wholesale licenses, from the mass tier to the luxury market. The Company also continues to arrange, as agent, through its wholly owned subsidiary, Bright Star, for the manufacture of footwear products for mass market and discount retailers under their private label brands.
As of December 31, 2011, the combined brand portfolio of the Company and its joint ventures consisted of iconic consumer brands Candie��, Bongo, Badgley Mischka, Joe Boxer, Rampage, Mudd, London Fog, Mossimo, Ocean Pacific/OP, Danskin, Rocawear, Cannon, Royal Velvet, Fieldcrest, Charisma, Starter, Waverly, Zoo York and Sharper Image. Candie�� is a junior lifestyle brand, with products in the footwear, apparel and accessories categories. The primary licensee for Candie�� is Kohl�� Department Stores, Inc. (Kohl��) with a multi-category line of Candie�� lifestyle products, including sportswear, denim, footwear, handbags, intimate apparel, children�� apparel, fragrance and home accessories. The Candie�� brand is also sold through Candie�� retail stores being developed in Greater China through its Iconix China joint venture and is also licensed in South Korea and the Philippines. The Bongo brand is positioned as a California lifestyle brand, with a range of women�� and children�� casual apparel and accessories, including denim, sportswear, eyewear, footwear and watches. The Bongo brand is also licensed in categories in Latin America and Canada. The Badgley Mischka brand is an eveningwear brands. Badgley Mischka products are sold in the United States through luxury department and specialty stores, including Bergdorf Goodman, Neiman Marcus and Saks Fifth Avenue, with its retail categories being women�� apparel, footwear, handbags and other accessories. Joe Boxer is an underwear, sleepwear and loungewear brand. The brand is also licensed in Mexico, Europe, Lat! in Americ! a, Singapore, Malaysia and the Middle East. Rampage products are sold through department stores, such as Macy��, with the retail categories being sportswear, footwear, intimate apparel and swimwear. The brand is also licensed in Canada, Latin America, South Korea, Thailand and the Middle East. Mudd is a junior lifestyle brand, particularly in the denim, footwear and accessories categories.
London Fog is a classic brand known for the Company's outerwear, cold weather accessories, umbrellas, luggage and travel products. The brand is sold in a range of categories through wholesale licenses in the United States, through the department store channel. The Company has a direct-to-retail license agreement for London Fog with Hudson�� Bay Corporation in Canada, covering apparel, accessories and lifestyle products and the brand has also been licensed in South Korea and Mexico. Mossimo is known as a contemporary, active and youthful lifestyle brand and is an apparel brands in the United States. Target Corporation (Target) has held the Mossimo license in the United States, covering apparel products for men, women and children, including casual sportswear, denim, swimwear, bodywear, watches, handbags and other fashion accessories. The brand is also licensed on a direct-to-retail basis to Falabella Retail S.A. in Argentina, Columbia, Chile and Peru and to licensees in Australia, New Zealand, Latin America, India and Japan.
Ocean Pacific and OP are global action-sports lifestyle apparel brands. The brand is distributed by Wal-Mart in the United States, Canada, Mexico and Argentina, and through licensees in Europe, the Middle East and Chile. In addition, the brand is licensed in Japan and its surrounding territories through its OP Japan joint venture.
Danskin is a brand of women's activewear, legwear, dancewear, yoga apparel and fitness equipment. The primary license for the Danskin brand is a direct-to-retail license with Wal-Mart for Danskin Now covering a range of women�! � and gi! rl�� apparel, footwear, accessories and fitness equipment. Rocawear is an urban lifestyle apparel brand established by Shawn Jay-Z Carter and his partners. The Rocawear brand is licensed in the United States in a range of categories, including men��, women�� and kids��apparel, outerwear, footwear, jewelry, handbags and fragrance. Rocawear products are sold through department and specialty stores. Cannon is a brand in home textiles.
Royal Velvet is a luxury home textile brand. Royal Velvet products include towels, sheets, rugs and shams. Fieldcrest is a brand for bed and bath textiles that are classic in style. Charisma home textiles are known for their classic designs. The brand is also licensed in the United States and Canada for distribution through better department stores, such as Bloomingdales. In addition, the brand is licensed in Australia and New Zealand. Starter is a brand in licensed team sports merchandise and is a brand of athletic apparel and footwear. Waverly is a home fashion and lifestyle brand in home decor. Waverly has a direct-to-retail agreement in the United States with Lowe�� Companies, Inc. for Waverly Home Classics for a range of select home furnishings. Zoo York is an East Coast based action lifestyle brand. Zoo York has licenses with wholesalers covering a range of products, including men��, women�� and kids��apparel and footwear. The brand is also licensed in Canada, Europe, Latin America, Japan, Australia, New Zealand, South Korea, South Africa, the Middle East and parts of Southeast Asia. Sharper Image is a brand in the consumer electronics industry. Its licenses for Sharper Image cover a range of products, including audio and video electronics, travel gear, personal home products, kitchen and bath accessories, massage products, air purification products and giftables, and in territories including the United States, Europe, Canada, Mexico, Latin America, Japan, Turkey and the Middle East.
Bright Star provides design direction and arr! anges for! the manufacturing and distribution of men�� private label footwear products primarily for Wal-Mart under its private labels. Bright Star acts solely as an agent. During the year ended December 31, 2011, Bright Star�� agency commissions represented less than 1% of the Company�� revenues.
Advisors' Opinion:- [By Marshall Hargrave]
If we narrow these comps down to some of GIII's fellow small-cap apparel peers, we see just how cheap the stock is. GIII trades at an 8.4x EV/EBITDA multiple, while QuikSilver (ZQK) trades at 16.2x, Iconix Brand (ICON) at 11.5x and Jones New York (JNY) 8.8x.
- [By Louis Navellier]
Iconix Brand Group (ICON) is in the business of licensing, marketing, and providing trend direction for a portfolio of consumer and entertainment brands. The company owns 33 well-known brands like Candie’s, Bongo, Joe Boxer, London Fog and Starter. It licenses the name for use in products like apparel, footwear, fashion accessories, home products and beauty products.
10 Best Gas Utility Stocks To Own For 2014: Light SA (LIGT3)
Light SA, formerly TRIAL Participacoes SA, is a Brazil-based holding company primarily involved in the energy sector. Light SA is a parent of the Light Group. The Company operates through four segments, such as Power Distribution, Power Generation, Power Trading and Others, through which the Company is engaged in the generation, transmission, distribution and marketing of electric power and other related services. The Company distributes energy to approximately 31 municipalities in the state of Rio de Janeiro. Additionally, the Company is engaged in the manufacture of two-wheeled electric vehicles. The Company operates through subsidiaries, such as Light Servicos de Eletricidade SA, CR Zongshen E Power Fabricadora de Veiculos SA, Light Energia SA, Lightger SA, Itaocara Energia Ltda, Amazonia Energia SA, Light Esco Prestacaoo de Servicos SA, Lightcom Comercializadora de Energia SA, Light Solucoes em Eletricidade Ltda, Axxiom Solucoes Tecnologicas SA and Instituto Light. Advisors' Opinion:- [By Ney Hayashi]
Oil company Petroleo Brasileiro SA (PETR4) contributed the most to the gauge�� advance as crude climbed. BR Properties SA rose the most since July 2012 after saying it will buy back shares. Phone company Tim Participacoes SA rebounded from a five-week low. Power utility Light SA (LIGT3) rallied after posting third-quarter earnings that beat analysts��estimates.
10 Best Gas Utility Stocks To Own For 2014: Nestle SA (NSRGY)
Nestle SA is a company engaged in the nutrition, health and wellness sectors. It is the holding company of the Nestle Group, which comprises subsidiaries, associated companies and joint ventures throughout the world. The Company has such business units as Food and Beverage, Nestle Waters and Nestle Nutrition. Nestle is also active in the pharmaceutical sector. It divides its products into nine categories: Prepared dishes and cooking aids, Beverages, Confectionery, Ice cream, Water, PetCare, Milk products, Nutrition and Pharma. It has numerous subsidiaries engaged in various areas of activity, including Alcon Ophthalmika GmbH (Austria), Alcon Bulgaria EOOD (Bulgaria) and Galderma Laboratorium GmbH (Germany) for pharmaceuticals; Novartis Nutrition GmbH (Austria) and Hjem-IS A/S (Denmark) for food and beverages, and Galderma International SAS (France) and Galderma Laboratorium GmbH (Germany) for health and beauty activities. The Company is headquartered in Vevey, Switzerland. In July 2008, Novartis AG acquired a 25% stake in Alcon, Inc. from Nestle SA. In March 2010, the Company acquired Kraft Foods Inc' frozen pizza business.
In April 2008, L'Oreal and Nestle SA's joint venture, Galderma Pharma S.A., announced that its United States holding company, Galderma Laboratories, Inc., had acquired approximately 97% interest in CollaGenex Pharmaceuticals, Inc. During the year ended December 31, 2004, Nestle had 500 factories in 83 countries around the world. In 2004, 15 factories were acquired or opened and 29 closed or divested.
Advisors' Opinion:- [By Rich Duprey]
Candy, mint, and gum account for about 90% of Hershey's U.S. retail business and saw gains of 6.8% in the quarter, which also led it to gain an additional 1.4% of market share, giving it nearly half of the entire market and putting it well ahead of second-place Mars, which is privately held. Nestle (NASDAQOTH: NSRGY ) is a distant third with just a 6% share, and while Mondelez (NASDAQ: MDLZ ) is a major chocolate player following the acquisition of Cadbury (and subsequent separation from Kraft Foods), it's primarily an international candy and snacks company.
- [By Dan Caplinger]
ConAgra (NYSE: CAG ) will release its quarterly report on Thursday, and investors have increasingly doubted whether the food giant can hold its own in an increasingly competitive environment in the industry. With Nestle (NASDAQOTH: NSRGY ) and Kraft Foods (NASDAQ: KRFT ) both having held up much better since August than ConAgra has, skeptics are pointing at ConAgra's lack of earnings growth as a reason to doubt its capacity for future success.
- [By Holly LaFon]
HL: And you��e held Nestle (NSRGY) for a long time.
TR: I first bought Nestle in 1987, and it was at that time it was very difficult to buy, and it�� probably compounded at close to 15% every year since then, total return. And it�� partly because it was so unloved at the start that the returns have been so strong. But I��e held it for 30 years, and it�� grown in large measure because of that capacity to reinvest, and we have this beautiful portfolio of brands. And they have the capacity to suffer. So for example they had global leadership in coffee, in Nescafe. On top of that they identified the single-serve coffee business as very on-trend because of the increasing number of people who live alone and who also want to have choice and variety. So it�� no longer enough to brew a pot of Maxwell House for 10 people because you have a big family. You��e living alone you want to have variety, you want to have just enough so you don�� waste. Single serve plays a big role in that. And they were willing to invest so heavily behind the development of Nespresso that they didn�� break even for 15 years. So I admired them. They have great domain expertise in coffee. And they have the capacity to suffer, through 15 years of not breaking even, to perfect the product so that by the time it came out it was a true winner. And so with that careful background, today the business does close to $5 billion. And it�� a very solid important franchise. That culture, of being able to take your domain expertise and move from one product to the next and then invest behind it to try to get it right, without rushing to try to show early profits, is at the heart of what I��e learned from these businesses that do it right, as things required to have permanent excellence.
10 Best Gas Utility Stocks To Own For 2014: Obagi Medical Products Inc.(OMPI)
Obagi Medical Products, Inc., a specialty pharmaceutical company, develops, markets, and sells topical aesthetic and therapeutic prescription skin care systems. It offers Obagi Nu-Derm System, including prescription and OTC drugs that are used for the treatment of fine lines, wrinkles, acne, photo damage, hyperpigmentation, melasma, laxity, and skin sallowness; Obagi Condition and Enhance Systems that are used before and after surgical and non-surgical cosmetic procedures; Obagi-C Rx System comprises Vitamin C with 4% hydroquinone system to treat skin conditions resulting from sun damage and the oxidative damage of free radicals; and Professional-C products consisting of Vitamin C serums for the treatment of antioxidant protection, fine lines, wrinkles, and hyperpigmentation. The company also provides ELASTIderm Eye and D�olletage, which increases the elasticity and skin tone of eyes, face, neckline, and chest; ELASTILash Eyelash Solution that enhances the appearance of thickness and fullness of eyelashes; CLENZIderm M.D. Systems and Tretinoin for treating acne; and Obagi Rosaclear System used for the treatment of rosacea. In addition, it offers Refissa and Blue Peel RADIANCE used for the treatment of fine facial lines, hyperpigmentation, and tactile roughness; Metronidazole used for the treatment of rosacea; Obagi Blue Peel Essential Kit used for the treatment of fine lines, wrinkles, and hyperpigmentation. Further, the company licenses non-prescription product concepts under the Obagi trademark to a Japanese-based pharmaceutical company for sale through consumer distribution channels in Japan. Obagi Medical Products, Inc. sells its products through sales force and distribution partners in the United States, North and Central America, Europe, the Middle East, and Asia to dermatologists, plastic surgeons, and other physicians that are focused on aesthetic and therapeutic skin care. The company was founded in 1988 and is headquartered in Lon g Beach, California.
Advisors' Opinion:- [By David Williamson]
Though many excited traders had hoped to see the bidding war continue between Valeant Pharmaceuticals (NYSE: VRX ) and Merz over Obagi Medical Products (NASDAQ: OMPI ) and a subsequent run-up in the stock price of the smaller dermatological products maker, Merz has now walked away from the table, leaving the highly acquisitive Valeant the victor. In this video, Motley Fool health care analyst David Williamson gives us some background on these companies and tells us how Valeant plans to profit from the deal, and describes for investors why this is a win both for Obagi and for Valeant.
- [By Keith Speights]
"Bidness" is good
Last week, Obagi Medical Products (NASDAQ: OMPI ) made our list of humongous performers after Valeant Pharmaceuticals� (NYSE: VRX ) announced a $344 million bid for the company. This week saw a bidding frenzy, with Obagi shares jumping another 29%.
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