NutriSystem, Inc. (NTRI)

6and8 (85.04) Submitted: 10/28/2008 11:37:36 AM : Start Price: $10.33 NTRI Score: +88.54

Deep value opportunity. Growing mix shift of customers towards previous NTRI users, those who have already bought into efficacy and need to control their weight again. Programs involve shipments of food in monthly steps -- natural rotation of users as they achieve their personal weight targets. Reduced marketing costs to reach this 'installed base' of customers as well. Main risks relate to the next weight loss fad - drug or diet craze. Typically result in short term competitive threats (ie. Atkins). Alli has not proven to be a significant threat -- uncomfortable side effects.