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Perhaps Today's Best Stock Pick is. . .Medifast

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December 04, 2008 – Comments (0) | RELATED TICKERS: MED

(MED) Medifast.

I like this company a lot and have had it on my watch list for quite sometime now this year.
They have met or beat earnings estimates all year long and while they will be impacted by the recession, they are a defensive play on the economy.  Given their stock price is more than 50% less than it's 52-week high and yet only down 14.8% year to date....This stock is extremely strong and bullish.

The company engages in the production and selling of Dietatary meals and vitamins for disease prevention.  Even in a down economy, people don't stop taking diets or vitamins. 

If the stock falls to as low as $3.50 then it becomes a ridiculous screaming buy.
Medifast at these levels is easily a double bagger and over the long term it could be your portfolio's best performing stock (period).

They have recently announced a subject matter expert team of 7 scientists to act as their Quality Assurance as well as Research and Development team.  They will assess existing programs and meals for quality and come up with new programs, meals, products, etc.

In a down economy when you see a Small Cap company with

5 year sales growth of 46.7%
Gross Margins 75%
Net Profit Margin 5%
Operating Margin 8%
PreTax Margin 7.5%

and best of all:

46% EPS growth rate with a P/E Cash flow around 6.3....

Medifast on any major DIP is a buy.

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