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Sunday, July 29, 2012

USANA mentioned as possible about target

USANA Take Over

As usual, is to a large factor in the growth of the industry their relationship the still massive boomer generation, an aging market by about 60 million people , the health are serious more than ever before.

The dietary supplements market have this constant fire under him for at least another 20 years. But a growing health consciousness, driven by research and mass communication, has opened the door for all age groups and dietary supplement was run well shoot the $10 billion mark.

But there is another reason, that this an industry be taken into account, and it has nothing to do with health. The fact is, that Big Pharma comes quickly to a so-called "patent cliff,", because starting a record number of patents expire and generic drug manufacturers are allowed in the party to crash. Regulations and the development costs have the squeeze on new drug development as never before, and developers are drug on the search for new opportunities.

Food and drugs are to start buying up supplements to get rid of companies, in part for the income and partially on the competition.

In fact, the power of the pharmaceutical industry in Washington has a role in a wave of new restrictions on supplements, limit what can be done about it in right. However, these fast-growing companies are increasingly targets, is considered tasty acquisition, which would represent a windfall for well positioned investors in listed companies.

Trading around $40, enters USANA Health Sciences in the healthcare sector with a market capitalization of about $600million. The niche is dietary supplements and personal care products with global ambitions.

USANA Health Sciences has its price earnings ratio of 11.65, a price earnings growth ratio of 0.61 and a prize for the book of 3.15. It has also a robust return on equity 31.03% and intelligent revenues for the quarter year compared to the previous year and net profit growth of 7.40% and 21.2%, respectively.

The company has no debt, which is why in this case which gets company a "n" from Yahoo! Finance and a solid 2.01/A for his current relationship. The stock pays no dividends and is undervalued 18.17% based on discounted cash flow.

Disclosure:I have mentioned no positions in USANA and no plans to initiate any positions within the next few weeks.

Deal

Source: seeking Alpha

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