There are no safe havens in the stock market. Every stock carries risk. But some less than others. This column features stocks that have shown one or more of the following characteristics: less volatility, better earnings, larger market caps, safe and increasing dividends. In these times of turmoil, our goal is to show readers better opportunities for investing with fewer risks.

Ocotber 18, 2010 - Allergan, Inc. (AGN-NYSE) a multi-specialty healthcare company, discovers, develops, and commercializes specialty pharmaceutical, medical device, and over-the-counter products for the ophthalmic, neurological, medical aesthetics, medical dermatological, breast aesthetics, obesity intervention, urological, and other specialty markets worldwide.

The Medical Devices segment offers a range of medical devices, such as breast implants for augmentation, revision, and reconstructive surgery; obesity intervention products, including the Lap-Band System and the Orbera Intragastric Balloon System; and facial aesthetics products. The company also offers Contigen for the treatment of urinary incontinence due to intrinsic sphincter deficiency.

It sells to drug wholesalers, independent and chain drug stores, pharmacies, commercial optical chains, opticians, mass merchandisers, food stores, hospitals, group purchasing organizations, integrated direct hospital networks, and ambulatory surgery centers, as well as to medical practitioners, including ophthalmologists, neurologists, dermatologists, plastic and reconstructive surgeons, aesthetic specialty physicians, bariatric surgeons, pediatricians, urologists, and general practitioners.

Allergan, Inc. has strategic research collaboration agreements with ExonHit Therapeutics S.A.; Spectrum Pharmaceuticals, Inc.; and Pieris AG. The company was founded in 1948 and is headquartered in Irvine, California.

To give an idea of the potential for Botox just for Migraines, research shows that about 2 million people are chronically affected by this debilitating headache. Some analysts see this market as a $1 billion opportunity by 2013 to 2015. Currently, total AGN sales are $4.8 billion.

The good news hasn't been lost on investors (even with the $610 to $615 million pretax charge that will be taken in the third quarter). The stock is trading at its all-time high, $72.50 as this is written. In the last 52 weeks, the stock has been as low as $53.32, hit on October 23, 2009. So is it too late to get on board? Is all the good news baked in? Here's what we know.

Earnings for 2010 should finish at $3.16, up from $2.78 last year. In the last 16 years, earnings have only gone down twice, once in 1997, once in 2002. For 2011, 24 analysts have a consensus estimate of $3.61, with a range of $3.41 to $3.80. Quarterly earnings will be announced on November 1. Expect third quarter totals to be 78 cents, above the 70 cents of last year's third. For the fourth, look for 88 cents vs 78 cents last year in the final quarter. Over the next 5 years, analysts see average annual growth of 13.6% for earnings.

The company continues to expand. It opened new facilities in Turkey and Poland in early July. So much of AGN's business is from cosmetic or aesthetic operations. The demand for its services knows no national boundaries. Also, since customers must pay cash before anything is done, collections are not a problem.

Not all of their products are for elective purposes. A new treatment for non-infections ocular inflammation which causes blindness was recently approved and should add to the top and bottom lines, showing up in 2011. That should expand market opportunities for all of AGN's retinal division.

As for the government payment, the company issued $650 million in debt with a coupon of about 3.4%. Even with that new issue, the company only has 15% of its capital from debt, and its Financial Strength is A+. It has $2.22 billion in cash.

More numbers: Forward P/E is 20. Trailing P/E is 27.38. Price to sales ratio is 4.38. Price to book is 4.11. Operating margin for the last 12 months was 24.13%. Profit margin was 16.96%. Return on equity was 17.14%. Return on assets was 9.77%. Return on assets was 9.77%. Total cash per share is $7.32. Total debt is $1.53 billion. Current ratio is 2.36. Book value per share is $16.75. There are 303.42 million shares outstanding with a Float of 302.46 million. Insiders own .25% of the stock. Institutions have 88.1% of the Float. The annual dividend is 20 cents a share for a yield of .30%.

Conservative investors should like the potential in this stock, the large cash position, and the strong balance sheet. The company will benefit from a stronger global economy as consumers will spend more on non-essentials once they feel their jobs are safe. And with the new application for Botox, sales will be less dependent on looks and more on relief.

- Company Web site: www.allergan.com

- Ted Allrich