Feeling a little heavy after the holidays? Wondering where to find help honoring that New Year's resolution to lose some weight, without attending "public" sessions? Go online, of course! There is an Web outfit in Fort Lauderdale that is helping nearly 120,000 dieters already.
eDiets.com (NASDAQ: DIET) develops and markets Internet-based diet and fitness programs in North America and Europe. It offers subscribers diet plans according to the individual's weight goals and includes related shopping lists and recipes. It also provides meal delivery service, corporate wellness programs and telephone/online support. The company has partnerships with Bristol-Myers Squibb (NYSE: BMY), Microsoft (NASDAQ: MSFT), and Time Warner's (NYSE: TWX) AOL.
DIET shares are up 40% over the past ten weeks, sparked by such issues as upside FY08 revenue guidance, favorable
analyst remarks, a new CEO and an improved technology platform. The news has the stock cycling through a positive trading channel. The price is currently near the base of that channel, where oversold Momentum and MACD technical parameters suggest the potential for a rise back toward the top. Correspondence of the issue's 30-day moving average to the base of the channel backs the rebound notion.
Brokers recommend the shares with one "strong buy" and one "sell." Analysts expect a 26% growth rate, through the next year. The DIET Revenue per Employee ($300k) compares favorably with the industry average. Institutional investors hold about 55% of the outstanding shares. Over the past fifty-two weeks, DIET has traded between $2.67 and $6.10. A stop-loss of $4.80 looks good here. Note that the firm is expected to report Q4 results in mid-March
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.
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Reader Comments (Page 1 of 1)
2-20-2008 @ 10:11AM
Linda said...
eDiets members - even long-timers - are leaving the site in droves due to a major website upgrade snafu. For the past week and a half, the site is mostly useless. The meal plans offered are showing up to 3000 calories/day, the support boards are cumbersome (when they work) and the company has not given anyone any information regarding when things will get fixed.