NutriSystem, Inc. (NASDAQ:NTRI)

CAPS Rating: 3 out of 5

The Company provides weight management and fitness products and services.

Recs

0
Player Avatar miksong (< 20) Submitted: 3/21/2011 3:39:54 AM : Underperform Start Price: $12.73 NTRI Score: +17.23

Revenues for the company have been falling like a knife over the last several years. The company deals in an industry driven by fads and its fad is clearly over.New customer starts have fallen like a knife and this has a circular effect on demand later on as much is circulated through word of mouth. Additionally, about 25% of the company's revenues come from previous users that decide to reup. This universe also now decreases. Sell-side analysts believe that this thing will miraculously turn things around by 2012E for NO reason. It hasnt been able to do this since 2007, but for some reason it will be able to do it now???

Featured Broker Partners


Advertisement