Since May 2007, the shares of Bare Escentuals (BARE) have had a hard time, going from $41.50 to a low of $3.66 (last March). But as the equities markets have rallied, so have the company's shares.

Now, the company has accepted a $18.20 buyout from Shiseido, which is the largest cosmetics company in Japan. The transactions comes to $1.7 billion and represents a juicy 43% premium over Thursday's stock price.

Today had all the earmarks of a great day to continue the bull market rallying on and on. There was a strong bullish bias and both Intel Corporation (INTC) and JPMorgan Chase & Company (JPM) both beat earnings. CPI remained tame, but the reading of consumer sentiment held things up. Most importantly, you have a bias set for this new earnings season. These stocks are up massively, and that much needed and way overdue pullback might finally be coming into play. The problem is that so far we are ten months now that every time that is about to happen, it has failed to materialize.

Here were today's unofficial closing bell levels:

Dow 10,609.65 -100.90 (-0.94%)
S&P 500 1,136.03 -12.43 (-1.08%)
Nasdaq 2,287.99 -28.75 (-1.24%)

Top Analyst Upgrades/Downgrades
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Here are some highlights from last week's earnings coverage from BloggingStocks:

• Aetna Inc. (NYSE: AET) reported better-than-expected Q3 earnings and revenue, sending shares higher.
• Allergan Inc. (NYSE: AGN) reported better-than-expected Q3 numbers, sending shares higher.
• Bare Escentuals Inc. (NASDAQ: BARE) Q3 profit easily topped analysts' estimates, and shares surged.
• Cabot Oil & Gas Corp. (NYSE: COG) received an upgrade following the release of its Q3 numbers.
• Estee Lauder Companies Inc. (NYSE: EL) reported strong Q1 results, sending shares higher.
• E*Trade Financial Corp. (NASDAQ: ETFC) reported a smaller-than-expected net loss for Q3.
• Goodyear Tire & Rubber Co. (NYSE: GT) Q3 earnings topped estimates and revenue was up sequentially.

Bare Escentuals (NASDAQ: BARE - option chain) shares are rising today after the company reported earnings last night after the close. Bare posted a third-quarter profit of $22.6 million, or 24 cents per share, topping analysts' estimates of 21 cents per share. This was a darling stock back in late 2006 and early 2007, but got crushed when the bear market fell apart and consumers were no longer interested in paying premium prices for cosmetics. However, the stock roared back recently as hopes for a strong recovery grow. If you think that the stock could regain its trendy status and won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on BARE.

BARE opened this morning at $13.38. So far today the stock has hit a low of $13.24 and a high of $14.54. As of 11:45, BARE is trading at $13.95 up $1.46 (11.7%). The chart for BARE looks neutral and S&P gives BARE a neutral 3 STARS (out of 5) hold ranking.

Bare Escentuals (NASDAQ:BARE), a mineral based cosmetics company, is recently up 51c to $22.26. BARE is expected to report Q1 EPS after the close tonight. BARE call option volume of 487 contracts compares to put volume of 6,391 contracts. BARE May option implied volatility of 100 is above its 26-week average of 57 according to Track Data, suggesting larger risk.

Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

MOST NOTEWORTHY: Corinthian Colleges, MSC Industrial and HBOS Plc were today's noteworthy downgrades:

• Piper downgraded shares of Corinthian Colleges (NASDAQ: COCO) to Neutral from Buy as they expect the company to face difficulty maintaining Title IV lending at its high default rate schools.
  
• Jefferies downgraded shares of MSC Industrial (NYSE: MSM) to Hold from Buy on valuation, as there is not enough upside to their $50 target to maintain a Buy rating
  
• Credit Suisse lowered HBOS Plc (OTC: HBOOY) to Underperform from Neutral to reflect the weakening housing and mortgage environment.

OTHER DOWNGRADES:

• Salesforce.com (NYSE: CRM) was cut to Market Perform from Outperform at Bernstein.
  
• B. Riley lowered Iomega (NYSE: IOM) to Neutral from Buy.
  
• Goldman downgraded Bare Escentuals (NASDAQ: BARE) and Procter & Gamble (NYSE: PG) to Neutral from Buy and Kimberly-Clark Corp. (NYSE: KMB) to Sell from Neutral.

Back on October 23, 2006 investment guru Jim Cramer came out strongly against Bare Escentuals (NASDAQ: (GS) BARE). I pitted my opinion against Cramers and "let it ride". I've just finished doing a cursory check on Bare Escentuals to see how they have fared. Suffice it to say, I hope no one sold their BARE shares based on Cramers advice.

The chart attached herein shall provide the whole story. My words are really not needed. Besides, I'm just a dude living up here in the woods and making cabinet panels for a living. What could I possibly know about investing? Bare Escentuals just went public in September of this year. Their performance thus far appears healthy to me.

The two stocks that Cramer liked in place of Bare Escentuals were Allergan (NYSE: AGN) and Medicis Pharmaceutical (NYSE: MRX). I will concede to Cramer that those two stocks have moved upward also. My point here is small and simple: You don't need a television crew and a stable of financial analysts to pick a winner now and then. If you have good instincts and the willingness to do your own research, you too can pick some stocks which will pay you to own. To quote my bald headed nemesis: "Do your homework."

(Image courtesy of Norton Sales)

Jim Cramer, never one to rest on a single industry segment, discussed the quest for youthfulness tonight on his ever-popular MAD MONEY show.

If you want your body to look like a teenager's but your bank balance to scream "old fogey," Cramer advises that you avoid Bare Escentuals, Inc. (NASDAQ:BARE). He calls it a fad that isn't going anywhere, and says if you own it you should "ring the register." It was spun off by an LBO firm, but now it's too late; the company won't make you money. Cramer had regrets over this one: he didn't tell a caller on Friday to sell, and wished he had.

Better options if you want to capitalize on America's quest for eternal youth? Cramer likes Allergan, Inc. (NYSE:AGN) for its Botox and Medicis Pharmaceutical Corporation (NYSE:MRX) for its competing product. He counselled against the big, luxury names in the space: Avon Products Group (AVP), The Estee Lauder Co. (NYSE:EL) or Revlon, Inc. (NYSE:REV). Cosmetic companies are unreliable to Cramer.

Cramer did say International Flavors & Fragrances Inc. (NYSE:IFF) is a good alternative, even though it is close to a 52-week high. He thinks the company is much better with scents and steady end markets. Soon it will split into two businesses, he says, as it creates sweet ingredients that it sells to large companies like P&G. He said IFF only trades at 16x forward earnings and it has consistent 10% earnings growth. The best pick of the bunch? IFF, Cramer says.

[Photo Michael McCauslin]