Medifast, Inc. (NYSE:MED)

I think this is a great opportunity and I'm recently long MED. The company has a stated goal of $1B in sales and $220million in pre-tax profit by 2017. I think that is roughly $130million in earnings. Even with a very modest multiple, MED could be a double or triple from today's price.

I also like the company because the product works. I lost 40lbs on Medifast. It was fast and very easy. Lots of obese people in this world.

There will be bumps on the road, but this company could mature into a much larger organization in 5-10 years.

This company consistently outperforms on earnings and revenue, but there may be some longer term trends that work against it.

Despite brief rally last year after SEC troubles cleared, stock continues to decline, with analysts proposing that clients are moving toward the Weight Watchers style of weight management.

Based upon historical earnings, I think this stock should be trading around $36.77 using 5 years of discounted cash flows. This yields a safety margin of 62.2%.

I spoke to god and he lovingly recommended this company and its lemon meringue bars.

Obesity isn't going away any time soon, and this company has a track record of successful weight loss.

Negative Earnings Surprise

America is fat and this company will help them get thinner. :) I think this one will be up quite a bit sometime over the next year. Don't know that I'd hold for a long time after that.

R industry starts screen

So, i read this article from forbes magazine about the 100 best small companies of 2010 and thought it was a nice idea to put them together in a portfolio and keep an eye on whats going to happen. This one, Medifast, was their nr 1, don't ask me why. For some odd reason i could not put vse [vsec] on the list so i'm down to 99. I hope some of you can use this list for 'something'.

cheers

MLM (Multi Level Marketing) makes my stomach turn. Listen to the latest CC. The wells fargo analyst commentary seemed almost fake. Good luck with this quasi ponzi scheme if you are long.

The product works, the market is huge, revenue is increasing at a rate to double every 1.5 years. Sooner or later the market will notice.

http://seekingalpha.com/article/236454-20-profitable-stocks-with-low-peg-ratios?source=TheMotleyFool
3. Medifast Inc. (MED): Specialty Retail Industry. Market cap of $360.3M. PEG ratio at 0.73. EPS has grown by 42.27% over the past 5 years, with EPS growth projected at 25.00% over the next 5 years. Sales have grown by 43.37% over the past 5 years. Short float at 17.74%, which implies a short ratio of 7.45 days. The stock has lost -12.37% over the last year.

Stock screen results. Using ROE, PE, LT debt/Equity, Current Ratio.

Low profit margin (7%) belies the 10 years of excellent ROE, EPS, and sales growth. The diet industry is a safe bet in America, where people are getting fatter while image still rules TV, movies, and even influences success. Plenty of desperate customers to flock to any successful diet products.

NAV

Sellof may be over. Holding 100 day MA

nothing will come of these allegations and the stock will climb back to where it left off, and then continue to grow like it always has...no evidence in sight that this will not be the case, great earnings and profit, lots of cash

As of today's date 1/11/10 I'm sure this is a safe bet. However it could outperform the S&P longer than Four Years too