Is Obagi Medical Products Great or What?http://www.fool.com/investing/general/2012/10/01/is-obagi-medical-products-great-or-what.aspx Rich Duprey
October 1, 2012
For every stock out there screaming "buy me," others simply give us a nudge and a nod. While all the attention might be focused on their five-star peers, we can sift through Motley Fool CAPS to find four-star stocks giving us the "high sign" that they're on the path to greatness.
These opportunities -- including familiar names and beaten-down companies -- rank higher than most of the other 5,400 starred companies, and it pays to investigate their potential. This time out we'll take a look at specialty pharmaceutical Obagi Medical Products (Nasdaq: OMPI ) , perhaps a less obvious source for tomorrow's great buys.
Obagi Medical Products snapshot
Source: FinViz.com. N/A = not applicable; OMPI does not pay a dividend. TTM = trailing 12 months.
Of course, just because the 180,000-member CAPS community has chosen this stock as one being on the road to greatness doesn't necessarily mean you should buy in, too. Due diligence is still required, but let's see why they think it might merit your attention.
In the sight of greatness
When shareholders expressed themselves in no uncertain terms they wanted the company sold -- they voted down a poison pill defense preventing someone from taking the company over -- it was high time that management hire an advisor to start exploring "strategic alternatives." Nothing doing. Last month, Obagi revealed in its conference call that it hadn't hired anyone, essentially dismissing investor wishes.
One big, happy family
There's good reason why shareholders might want to get out. Last year, Obagi had to withdraw from the Texas market after concerns were raised about its hydroquinone, and now it faces similarly prickly problem