Weight Watchers (WTW), the well-known provider of solutions to those who want to shed a few extra pounds, issued Q3 numbers on Tuesday. While losing inches is always a popular activity, that doesn't mean that the company will always see growth.

According to the corporate press release, Weight Watchers saw an 8% decline in net sales. Earnings per share came in at 68 cents on a diluted basis. That was only a penny better than the year prior. Management is certainly making the most of its revenues by keeping costs and expenses down, but it is obviously disappointing to shareholders when income expansion is dependent on belt-tightening.

Most of the myths regarding market moves are not worth the paper they're printed on. That said, one old wives' tale worth noting, and even following, is the January effect.

For whatever reason, small-cap stocks do indeed outperform their larger brethren during the month of January.

I recently provided a list of 5 Stocks for the January Effect. On the list was a former high-flyer that lost enough market value to now qualify as a small-cap stock -- NutriSystem (NASDAQ: NTRI).

NutriSystem captured the investor imagination with its unique solution to weight loss and weight management. The company's home delivery of prepackaged meals promised ease of use with results.

Given the huge audience for such a solution, NTRI presented investors with a great growth opportunity. Even though it took a few years to catch on, investors eventually got the idea.

NutriSystem became a darling of the momentum crowd in 2005. In the span of a year and a half, the stock moved from the single digits to above $80 per share. Coinciding with a big marketing program, revenue and investors seemed to grow in tandem.

That's all well and good, but at some point valuation does matter. That time usually comes when growth or results fail to meet elevated expectations. For NTRI, that started to happen in mid-2007.

In no time flat the stock lost more than half its value as the momentum crowd fled. The stock has been trading on a flat line around $15 per share for most of 2008.

McDonald's (NYSE: MCD) chief executive cry baby Jim Skinner told attendees at the National Restaurant Association's annual convention that the increasing popularity of state regulations requiring fast food chains to disclose calories counts are "redundant and flawed" and referred to the activists pushing for these measures as "CAVE people - Citizens Against Virtually Everything."

With all due respect to Mr. Skinner, he couldn't be more wrong or disingenuous.

Posting calorie counts on menus will give consumers greater and more convenient to nutritional information than they've ever had before. The reason McDonald's opposes these laws is that they know that if people knew what they were eating, many would eat less and save some of the money for the respirator.

The fact that Mr. Skinner is so worried about these laws that cities including New York have adopted demonstrates that they aren't redundant. If they were, there would be nothing to worry about!

It's a shame when the CEO of one of America's largest companies takes a stand against providing consumers with more information in a more convenient format.

The earnings party of last week was full of fun and frolic. For the most part, if you followed my list of recommendations, you would have had your very own "Fiesta de Finance." (See Week in Preview – May 5)

The earnings season is still in full swing and should provide a great deal of action for the companies that will be reporting. But these companies will have to fight through a few new economic barriers. With oil pushing past historic levels and questions beginning to surface concerning the ability of the investor to continue to support a market that has so many headwinds, the mood is likely to shift moving forward. It is time for discipline, short and simple. Now, more than ever investors need a plan. I cover this strategy in my book, The Disciplined Investor.

In the last installment of The Week in Preview, I was looking for party opportunities in honor of Cinco de Mayo. This week, Misery is the theme. That is the only word that comes to mind with oil at a level that you would have never expected, a massive and unrelenting credit and housing crisis and a banking system that is defunct.

Monday - May 12

We start the week with a report from IndyMac Bancorp (NYSE: IMB). This bank is smack in the middle of the housing problem. It is primarily a lending company that facilitates loans for single-family homes. It's also involved in the origination and trading of mortgages. How does that sound to you as an investment? Shares have slid from $23 in October 2007 to an unbelievable level of $3.50 recently. Ouch... If you are a shareholder still holding on with hope and a prayer for something...anything, keep on dreaming. The good news is that the stock is sporting a yield of 29%. But, if you think that yield is going to be maintained, I have a bridge for sale. Estimates are for a loss of $1.92 per share for the quarter.

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.

With all the eating that took place over the last few weeks, it's time to try and shed those unwanted pounds. For those looking to invest based on this inevitable trend, take a look at NutriSystem (NASDAQ: NTRI). The company offers a weight-loss program based on portion-controlled, lower Glycemic Index prepared meals. The stock has certainly shed some girth over the last year, getting trimmed by over 65%.

While you can let me know if you think their meals are tasty or not, at these levels the stocks looks really attractive, sort of like the piece of hot chocolate cake that is staring me in the eyes as I write this! The stock is trading at a PE of just 8.08 and a PEG of 0.44. Their remains a large short-interest on the stock, which is keeping the pressure on, but if the company has some good news, the shorts will have to cover and this could take off like a rocket. At $25 a share, this looks like their will be plenty of upside to the stock price.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. Disclosure: Writer has no position long or short in any stock mentioned as of 1/3/08.

As news of the nationwide obesity epidemic among children sweeps through the media, it's hard to fathom that one of major purveyors of crap food are the schools: Yes, those places we send children so they can be safe and grow up to strong, intelligent members of society.

Mercifully, Congress is close to dealing with the issue. According to the New York Times, "Federal lawmakers are considering the broadest effort ever to limit what children eat: a national ban on selling candy, sugary soda and salty, fatty food in school snack bars, vending machines and a la carte cafeteria lines ...Several lawmakers and advocates for changes in school food believe that an amendment to the $286 billion farm bill is the best chance to get control of the mountain of high-calorie snacks and sodas available to schoolchildren. Even if the farm bill does not pass, Mr. Harkin and Senator Lisa Murkowski, Republican of Alaska, a sponsor of the amendment, vow to keep reintroducing it in other forms until it sticks."

Signing this bill would send the right message. It's important for schools to raise money to fund programs, but exploiting vulnerable members of society and selling them something that could have a very negative impact on their lives is not the right way to do that. Government should not fund programs, however worthy, that sell unhealthy stuff to people.

The next step is for some independent-minded, courageous politicians (yeah, I know) to take on the lottery, which is similar to junk food in schools, in that they raise money by selling unhealthy products to society's most vulnerable.

Restaurateurs are cheering a New York court's decision striking down a menu law implemented by the New York Board of Health. The law required fast-food restaurants to disclose on their menus how many calories were in their meals.

The Department of Health says it is disappointed its law was overturned on a "technicality", and that it will continue to explore ways to make it easier for the consumer to eat healthy. If you've ever tried to get nutritional information in a fast-food restaurant you know how hard it can be. If you have the foresight, you can get it quickly online, but I've been in McDonald's (NYSE: MCD) locations where I was told they did not have the information available on site. Even if they do, it can be a hassle, and displaying it on the menu is the logical way to make sure consumers have convenient access to the information they need to make a decision.

The idea of New York's law was very similar to the way our securities laws are in this country: It was based on clear and compulsory disclosure, rather than subjective requirements. A public company can have O.J. Simpson and Jose Canseco as its CEO and CFO, as long as it discloses the baggage they bring. Similarly, McDonald's should be allowed to serve whatever it wants -- but consumers should be warned that they may find themselves carrying extra baggage if they order the wrong item.

It's a shame that fast-food chains want to keep their customers in the dark about nutrition, and it's unfortunate that the court has stymied the Department of Health's efforts to provide the consumer with greater information.

School cafeterias are getting healthier and, amazingly, some parents are complaining about that.

According to The New York Times, they're upset that some school districts aren't letting kids bring in cupcakes to celebrate birthdays. And without in-school sales of baked goods, however shall parent-teacher associations raise money?

Texas parents even lobbied for a "safe cupcake amendment" (no joke) to be added to the state's school nutrition policy, to ensure that students could bring in the tasty treats for birthday parties. Their efforts were successful.

Given the burgeoning obesity epidemic, we should be applauding various school districts for removing deep fryers from their kitchens, using low-fat products, and switching from soda to water.

Are parents right to be complaining about the ban on cupcakes? I don't think so.

The idea of celebrating accomplishments/milestones with unhealthy foods -- and drowning sorrows with soda -- is one of the things that has led to the current crisis (Yes, 60% of America being overweight is a crisis). Instead of cupcakes for birthdays, how about walks in the woods or extra-recess time to play kickball or capture the flag? It might sound corny, but I think a lot of kids would find that more fun. And their waistlines would thank them.

And if PTO's can't raise money without selling junkfood, then they have a serious creativity deficit.

While the sweetest of soft drinks may now be off limits in high-school vending machines, some hip new options may soon be available to the nation's students.

In May 2006, the beverage industry voluntarily agreed to stop selling full-calorie sodas in schools. The agreement stated that companies could sell milk, water, diet sodas, sports drinks, and unsweetened and low-calorie juices.

The industry has now expanded this list to include additional beverages meeting the criterion of fewer than 100 calories per 12 ounces. Certain flavored iced teas and vitamin-flavored waters fit the bill. Most varieties of Glaceau VitaminWater, a recent acquisition of Coca-Cola (NYSE: KO), have 75 calories or less. The same is true for the various flavors of SoBe LifeWater, owned by PepsiCo (NYSE: PEP).

A survey in The Archives of Pediatrics and Adolescent Medicine showed that children thought the food which comes in a McDonald's (NYSE:MCD) wrapper tastes better than food in a plain wrapper. That is, of course, if there is actually a burger in both.

According to The New York Times "almost 77 percent, for example, thought that McDonald's french fries served in a McDonald's bag tasted better, compared with 13 percent who liked the fries in a plain white bag." The same held true with carrots.

Given that amount of fatty food that the chain serves and the problems with child obesity, the medical community, as one might expect, went wild. One of the doctors involved in the survey commented: "The best response the fast-food industry could make to this information is to alter their menus to include a majority of healthful foods instead of encouraging consumption of high-fat, high-calorie foods."

McDonald's executives took a different view. The company said that it has been selling branded apples, milk, and other healthy food for some time.

McDonald's is being a bit cute here. Most of the food it sells is high in fat and if children were given a daily diet of the stuff they would most likely become corpulent withing a few months. The fast food chain could hardly be called a shining light for the health food industry.

But, it is not the chain's job to make sure that we are healthy. It is just their job to feed us.

Douglas A. McIntyre is a partner at 24/7 Wall St.

An interesting piece on MSN Money highlights a little-touted benefit of vegetarianism, for all of cynical cheapskates out there. I probably wouldn't go vegetarian because I feel sorry for the furry woodland creatures, and I certainly won't do it for my health. Arteries? I mean come on. But they've finally found something that might just convert this steak-guzzling carnivore: Being a vegetarian can save you money.

Aside from the benefits of having good health later in life, check this out:

If you drop red meat, poultry, and fish from your diet, you'll find plant proteins cheaper than the equivalent amount of animal protein ... Contrast that with dried beans and lentils at less than $1 a pound and rice well below $1 per pound ... Even tofu, the chicken of the vegetarian world, is usually well under $2 a pound.

All right, I'm sold! Note to PETA: Instead of sending me mailings full of propaganda about animal cruelty, send me a detailed summary of how much money I can save each year by being a vegetarian. The number one thing marketing experts say you have to tell the the customer is: "What's in it for me?"

I would be willing to bet that a national ad campaign touting the economic benefits of a meat-free diet would convert a lot of cynics like me.

McDonald's (NYSE: MCD) has done much to bolster its reputation in the wake of media scandals led by the hit documentary 'Supersize Me.' It has launched wellness initiatives and created healthier menu options. The stock price has responded. But now supersized sodas are back, with a 42-ounce drink the company is calling "Hugo." The New York Times calls it "Tubbo" which, at over 400-calories for a regular soda, seems appropriate.

The company defends the product by saying that super-sized sodas are back by popular demand and that people are thirstier during the summer. But here's why I'm not buying it: Any doctor would tell you that drinking 42-ounces of soda is extremely unhealthy, and it's wrong for a company to market a product that is, by definition, unhealthy for anyone.

The Times also points out that "Making matters worse, Hugo ads are available in several languages, making sure that minorities -- who are disproportionately affected by the obesity epidemic -- are aware of the budget beverage."

A few months ago, I wrote about "Hungry-Man's thousand-calorie breakfast, which contains 231 percent of the recommended daily value for cholesterol in one serving. So the recommendation is that you consumer 2.3 times as much cholesterol at breakfast as you should during that entire day. No one should eat this product, and companies shouldn't market products that are by definition bad for you."

The same applies to McDonald's. It's socially irresponsible to sell a product that is hazardous to people's health in the serving size it is marketed at.

I've heard lots of excuses for weight gain -- depression, stress, work, injuries, kids, but this is a new one: Blame your credit cards!

According to a piece on BankRate, people tend to spend more when they use a credit card instead of cash, and that also applies to food purchases: "A Visa study of 100,000 restaurant transactions found that customers spent, on average, 30% more than those who paid with cash. That 30% can be the difference between a small order of fries and soft drink and a supersize order, or it can be the addition of a high-calorie dessert."

That an increase in the size of the check at a restaurant would lead to an increase in consumption is a no-brainer. So here's a diet tip: Pay cash when dining out. It'll keep your wallet heavier and you body lighter.

As Americans get fatter and fatter, their employers are looking to do something about it. But it seems that most companies aren't just guided by altruism. According to an Associated Press piece, "A study published in April by a group of Duke University researchers showed obese employees had higher rates of workers' compensation claims, more lost work days and costlier medical bills than their trim coworkers."

Even Wal-Mart (NYSE: WMT) has gotten in on the act. In April, I wrote that Wal-Mart was starting a line of self-help classes and group for its employees. In the states where the programs have been launched, 50% of employees have signed up for programs that involve quitting smoking, saving money on electricity, and healthy eating. Group aerobics classes and employee jogs have also taken root at the company.

Some might see efforts at helping employees lose weight as intrusive or big brother-ish. But this is a health issue, and given the employers will ultimately pay the price for unhealthy lifestyles, it's great that they are looking to help employees change.

While it's surprising that Wal-Mart is quietly leading the charge on this issue, it's indicative of the great power that Wal-Mart has to do good when it wants to.