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.

Continue reading Weight Watchers sees lighter sales in Q3

Weight Watchers sees lighter sales in Q3 originally appeared on BloggingStocks on Wed, 11 Nov 2009 15:40:00 EST. Please see our terms for use of feeds.

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.

Continue reading Weight loss goes wholesale -- buy NutriSystem (NTRI)

Weight loss goes wholesale -- buy NutriSystem (NTRI) originally appeared on BloggingStocks on Tue, 06 Jan 2009 13:15:00 EST. Please see our terms for use of feeds.

McDonald's

McDonald's CEO whines about menu disclosure laws originally appeared on BloggingStocks on Mon, 19 May 2008 09:09:00 EST. Please see our terms for use of feeds.

Continue reading The week in preview: Misery loves these companies (WFMI, SIRI, BBI and more)

The week in preview: Misery loves these companies (WFMI, SIRI, BBI and more) originally appeared on BloggingStocks on Sun, 11 May 2008 12:10:00 EST. Please see our terms for use of feeds.

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.

Continue reading eDiets.com: Online assistance for finding that slimmer you

eDiets.com: Online assistance for finding that slimmer you originally appeared on BloggingStocks on Mon, 07 Jan 2008 14:35:00 EST. Please see our terms for use of feeds.

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.

NutriSystem profits from holiday weight loss originally appeared on BloggingStocks on Thu, 03 Jan 2008 13:07:00 EST. Please see our terms for use of feeds.

Congress may ban junk food from schools -- what took so long? originally appeared on BloggingStocks on Mon, 03 Dec 2007 19:19:00 EST. Please see our terms for use of feeds.

Why restaurants should be required to provide nutritional information originally appeared on BloggingStocks on Wed, 12 Sep 2007 18:55:00 EST. Please see our terms for use of feeds.

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.

School cafeterias get healthy: How much is too much? originally appeared on BloggingStocks on Fri, 07 Sep 2007 17:34:00 EST. Please see our terms for use of feeds.

Continue reading High school vending machines getting more eclectic

High school vending machines getting more eclectic originally appeared on BloggingStocks on Tue, 21 Aug 2007 18:00:00 EST. Please see our terms for use of feeds.

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.

McDonald's burgers taste better than plain paper: The power of advertising originally appeared on BloggingStocks on Tue, 14 Aug 2007 07:00:00 EST. Please see our terms for use of feeds.

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.

Vegetarianism: Good for your heart ... and your wallet! originally appeared on BloggingStocks on Sun, 29 Jul 2007 15:40:00 EST. Please see our terms for use of feeds.

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.

McDonald's is back with supersized sodas originally appeared on BloggingStocks on Mon, 23 Jul 2007 09:54:00 EST. Please see our terms for use of feeds.

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.

Is your credit card making you fat? originally appeared on BloggingStocks on Sun, 08 Jul 2007 16:30:00 EST. Please see our terms for use of feeds.

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.

Should your boss help you lose weight? originally appeared on BloggingStocks on Sun, 01 Jul 2007 10:40:00 EST. Please see our terms for use of feeds.

If you do the shopping in your household, you've probably noticed that grocery prices are on the rise. Prices rose 4.4% in May year over year, and 2007 is shaping up to be the biggest single-year increase since 1990. The increase is largely attributable to rising energy costs and until that lets up (Any guesses?), Americans probably won't find much relief at the supermarket.

According to Time Magazine, this might not be such bad news: After all, shouldn't an increase in food costs lead to a drop in consumption, and let a little bit of the bloat out of country's collective waist line?

Continue reading Are rising food prices actually good for the consumer?

Are rising food prices actually good for the consumer? originally appeared on BloggingStocks on Mon, 25 Jun 2007 19:40:00 EST. Please see our terms for use of feeds.

KFC, a subsidiary of Yum Brands (NYSE: YUM), has announced that it will eliminate trans fat from its fried chicken, and proudly proclaims this fact on its buckets. While it's certainly good news from a health perspective, I wonder if it will have any positive impact on the company's marketing: Does anyone who eats Kentucky Fried Chicken really care about their health anyway?

This seems a little bit like offering a kosher menu at a fundraising event for a church. The people who will be impressed by the change to trans fat-free still won't be going there anyway.

KFC to eliminate trans fat in chicken originally appeared on BloggingStocks on Mon, 30 Apr 2007 05:52:00 EST. Please see our terms for use of feeds.

Contradicting those who say there is no fat left in the American market, NutriSystem (NASDAQ: NTRI) has made our waistlines its bottom line, and it too is growing nicely. Having outlasted the Atkins craze, the company yesterday reported a hefty 62% increase in earning for the first quarter of 2007 of $238.6 million. Better yet, net income grew 70%, bringing EPS to $1.04, well above the $.91 expected by analysts polled by First Call/Thompson Financial. This compares to a skinny $.60 in 2006.

Ironically, the company is thriving, according to CEO Michael E. Hagen, in part from its failure to provide a long term solution for its customers. In his words, "an integral part of our first quarter has been the ongoing expansion of our pool of ex-customers and their desire to return to NutriSystem for weight management services. The operating margin expansion we saw in the first quarter was partially due to the growth in revenue from ex-customers." Direct sales were also a hefty contributor, up 52% over 2006 to 358,000. Confident in the American appetite for cheesy fries, the company raised guidance for 2007 to $3.34-$3.46.

The company's emphasis on direct sales, lack of direct competitors and its valuable, ever-growing database of people who share my tendency to expand and contract, cause long-term prospects for NutriSystem to look plump. After all, if you pair a milkshake ad, candy bar ad, or a beer ad with a swimsuit ad, what do you get? A NutriSystem ad.

NutriSystem gaining like crazy originally appeared on BloggingStocks on Thu, 26 Apr 2007 11:07:00 EST. Please see our terms for use of feeds.

In titling this post, I was going to go with the inevitable pun of "Zero being The Coca-Cola Company (NYSE: KO) Hero" but, unfortunately, The Wall Street Journal beat me to the punch. As consumers move away from soda and toward more healthful premium beverages (such as Vitamin Water, my personal favorite), Coke has had surprising success with Coke Zero, a zero-calorie version of Coke which apparently tastes less like poison than regular Diet Coke. According to Coca Cola Chairman and CEO E. Neville Isdell, the initial success of Zero makes it Coke's most successful new product launch in 20 years.

As a young consumer, I believe that Coke Zero's success is largely a function of slick marketing campaign. They've actually managed to make diet soda cool. The slick ad campaign, which included slick, GQ-esque ads, in addition to funny ads that invited readers to sign up for a class-action lawsuit suing Coke Zero for tasting too much like regular Coke.

As beverages from companies like Jones Soda gain in popularity and cache, the traditional soft drink companies will need to revitalize their images. Coke has done just that with Coke Zero and they will probably continue to experience success.

Coke Zero is no zero, it's a big hit originally appeared on BloggingStocks on Tue, 17 Apr 2007 16:54:00 EST. Please see our terms for use of feeds.

I just read an interesting little blog post over on That's Fit by Rigel Gregg. It provides a link to an article at eDiets by Dr. Matthew Anderson regarding the proposition that "domestication" of our wild side can lead to being unfit. While the seed article itself is interesting and leaves plenty of room for debate, for me it re-opened the door to one of my core concepts of healthy living, which is: Health and happiness reside mostly in the mind.

Let us imagine that you just hit it big in the markets. That stock you put $1,000 into has just jumped 300%. You sold out quick and realized all your profit. After fees and taxes you will be sitting on a small fortune, providing that you follow the advice of a qualified CPA.

But answer me this: If you had spent the week prior to getting your stock market windfall beating yourself up about being 30 pounds too heavy, not having a partner, never having had the opportunity to go to college, or because your hair is getting thin, what makes anything any different now that you made a lucky pick that generated some cash? If you hang your happiness on anything that is truly beyond your own control, then that happiness shall never be found, and true health shall remain beyond your grasp.

So, as you make your stock picks and research all of your investment plans, please do me one small favor. I promise it won't hurt one bit. Remind yourself that regardless of what the markets do, your own personal happiness is kept mainly within your grasp. Yes, loads of cash can make life easier, and there are many health issues that shall be visited upon each of us that are beyond our own control. But within the framework of circumstances that create your existence, the intangible concept of happiness can be had without a price tag, and it shall always provide compounded returns when properly invested.

What good is money if you've lost touch with your wild side? originally appeared on BloggingStocks on Sun, 15 Apr 2007 09:10:00 EST. Please see our terms for use of feeds.