NutriSystem, Inc. (NASDAQ:NTRI)

Income investors would be attracted to the 8.2% dividend. Plus, more Americans are trying to lose weight.

Recent downgrade to neutral is attributed to eroding customer base and desperate attempts to attract clients using profit-consuming sales promotions.

They pay a 5.3% dividend. They make enough cash flow to support it. They have $65 million in cash and about $30 million in debt. I just think it is too cheap and should make a good trade

For two reasons:
1) My wife tried their food. It is horrible, absolutely disgusting. So they get you to lose weight by not eating.
2) They are now running a 50% off special. That can only mean they are desperate for additional revenue. No doubt their profitability will suffer. Companies that are managed by the top line rather than the bottom line are typically on a down swing (LU under Rich McGinn, anybody?).

Simple. I have used it before.

1x - 4/1

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???

Caps most down: Huge drop last night when reporting earnings that met expecations. Seems overreaction, expect correction in next few months

Category      Personal Score
Growth Rates %      Low
Price Ratios      High
Profit Margins %      Low
Financial Condition      Very High
Investment Returns %      Very High
Management Efficiency   Very High
Total Score      High

Low glycemic diet and great cognitive-behavioral model. It's the best weight control/diabetic product on the market.

Short interest: 32% of float

pleasures without the baggage

My gut just tells me not to go for this one. Huge returns on Assets, Equity and Investments, yet steadily decreasing revenues...Steadily decreasing revenues, yet paying out a dividend...

They have a nice yield, but looking at historical prices, NTRI may have peaked in the mid-2000's. Yes, Americans are obese and they need weight-loss help, but the long-term for NTRI doesn't seem very solid. I did have a friend who tried this product and it did work for a while, but once his body's metabolism got used to portion control, NTRI wouldn't cut it anymore.

I like products that can maintain customers. Not those that rely on always finding new ones, because if they're product was really efficient, in the end no one would need it.

one of the only diet systems that works

OBESE AMERICA! +buyout candidate!

1) america needs to get in shape 2) beaten up 3) lots of short interest 4) some insider trading

Depressed job market, debt laden consumers, rising tax burdens, corporate real estate, credit card defaults, and especially housing starts. The latter typically leads normal recoveries.

It's cheap right now. They recently beat estimates for the recent quarter, but gave a disappointing outlook for the next quarter. Quarter? Great, in my opinion. This is my evaluation of the present situation. Everybody lost everything from the end of 2007 to March of 2009. They've gotten a lot of it back since then, but most have not recovered what they lost, and the emotional damage from it all is HUGE. Many could barely afford to eat, let alone think about weight loss programs. And they got depressed and fat. NOW, starting to get some money back in their wallets, hating how fat they've gotten eating at McDonalds. I think a lot of people, now that they've got a little bit of money, a fair amount of fat, and a lot of lingering depression, they want to DO something. But what? I know, let's DIET!!! Gonna be a bunch of that, I think, and a lot of the people who'll be doing it are people that have recently discovered the joy (read, economy) of shopping at Walmart. End of story. I'm not only adding NTRI to my CAPS ratings, I'm buying a decent bundle in a long term buy and hold account (oh yeah, and let's not forget a 4.5% dividend), and right now, a double bundle in a short term swing trading account (will buy for the upswing on 3/18).

Stock is way oversold, niche is in consolidation and NTRI is a likely leader. Think stock activity maybe showing pre-takeover action.

Expanding their product line and exposure via several key retail partners (walmart, target, walgreens).