Medifast Inc (NYSE:MED)

CAPS Rating: 4 out of 5

The Company is engaged in the production, distribution, and sale of weight management and disease management products and other consumable health and diet products.


Player Avatar expert6 (< 20) Submitted: 12/8/2009 11:12:50 PM : Underperform Start Price: $31.01 MED Score: +89.00

This is one of best shorts ever. Med is up about 9 times over its recent low. PE of 47 ( to the moon already ) Predominantly only substantial insider selling this year. Cash and real assets not much over $1 per share. Expense rate has almost kept up with growth rate which the 2010 rate projected by the euphoric analysts is less that a third of the 2009 rate. MED boasts of 20 thousand doctors involved Ha Ha You know the credibility is shot when they admit only one percent of sales base is doctors. The diet hype won't carry this stock into the next universe but it is set for a parachuteless dive when there is a race to get out of the back door when the buyers soon wake up and realize they bought into a real firetrap. If you get my reasoning figure out that it is best to sell at it's high right here . I think fair value may be in low teens at best. Remember what Cramer says about what happens to pigs - they get slaughtered.

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