Weight Watchers International, Inc. (NYSE:WTW)

CAPS Rating: 3 out of 5

A consumer company, which provides weight-loss services around the world. It conducts business through a combination of company-owned and franchise operations.

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Member Avatar TrackMagicFormul (86.49) Submitted: 6/11/2014 6:20:50 PM : Outperform Start Price: $21.03 WTW Score: -2.79

Investors should consider selling puts. You can achieve some very high annualized returns at strikes significantly below the current price. e.g.

Jan 15 $20.00 strike at $2.40 has 20% discount and 20% annualized return.

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Member Avatar Haugurafpeningum (52.62) Submitted: 4/7/2014 2:15:50 PM : Outperform Start Price: $20.50 WTW Score: -4.54

Betting on a turnaround.
Stock Down 75% from its hights.

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Member Avatar BUbulldog (53.71) Submitted: 2/18/2014 2:48:34 PM : Underperform Start Price: $21.31 WTW Score: +8.22

The mindset of this company is archaic. They are clinging to meeting revenues as their primary revenue source, while free mobile apps begin to run circles around them. Have a visit to one of their meetings...what will you see? A room full of women, not a single person under the age of 40. Try to purchase product from their retail stores or website: Not permitted unless you're a member. As opposed to taking a handful of cash from a willing customer, they turn you away in hopes you'll come crawling back to attend a meeting. They are missing out on millions in retail/web revenue.

2015 EPS cut to ~$1.60 per share, or half of what it was in '14. No light at the end of the tunnel for this dinosaur. Until this company comes to grips with the current day environment (mobile apps, technology, and today's generation of weight losers), the price target on WTW is mid teens at best.

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Member Avatar AnsgarJohn (99.22) Submitted: 2/14/2014 10:24:54 AM : Outperform Start Price: $22.91 WTW Score: -15.55

Pick at $23 cash flow baby Weight Watchers

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Member Avatar Hugz (50.08) Submitted: 2/5/2014 10:12:31 AM : Outperform Start Price: $28.64 WTW Score: -39.58

Has been battered over the past year, down around 45%, even though the stickiness of its product has not slowed--this still serves as the most adherent weight-loss program in America, Land of the Obese.

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Member Avatar StewpotDrew (30.96) Submitted: 2/2/2014 11:55:36 PM : Outperform Start Price: $28.67 WTW Score: -37.41

Undervalued

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Member Avatar shamapant (79.84) Submitted: 1/29/2014 11:49:32 PM : Outperform Start Price: $27.33 WTW Score: -33.26

Getting killed for short-term enrollment troubles, but the declines are still leaving an extremely profitable company. Enrollment declines will likely be short term...if you plan to hold for 5 years, you should be in the clear as high normalized earnings will save this company.

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Member Avatar anne2013 (< 20) Submitted: 1/21/2014 11:12:44 AM : Outperform Start Price: $28.89 WTW Score: -34.76

Obesity rates are obscenely high. Weight watchers is evidence based - meaning research shows it works and is highly effective unlike many fads. It is a healthy way of losing weight and most health care professional and health insurance companies endorse it

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Member Avatar Chemdawg (63.17) Submitted: 9/14/2013 1:28:32 PM : Outperform Start Price: $37.69 WTW Score: -59.35

no shortage of fat people here...and the P/E is not going to go much lower....solid dividend and an extremely high margin business model ...hold until they conduct another "share buyback" which typically results near the top of the market for some reason.

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Member Avatar NovaTodd (76.99) Submitted: 8/30/2013 10:11:09 AM : Outperform Start Price: $36.27 WTW Score: -62.13

WTW generates large amounts of surplus cash thanks to its asset-light business model; unfortunately, the majority of this FCF will likely go towards paying down a heavy debt burden incurred last year to fund a repurchase of shares at premium prices. This will, however, cause the EV/EBITDA multiple to compress unless the equity increases by a commensurate amount. The equity is currently valued at just under 8 times normalized free cash flow, so there is room for growth.

Revenue from the online business grew 26% from 2011 to 2012, and there's been steady growth in this segment dating back to 2008. Since margins are considerably higher in the online segment, growth in this space should be more than enough to offset any further declines in meeting attendance. As a result of this growth, I do not expect EBITDA to decline over the next several years, nor do I expect the market to assign a lower multiple than today's ~8x, since this is at the low-end of the company's historic valuation. This leaves an increase in share price as the most likely mechanism for maintaining today's EV/EBITDA multiple; the possibility for multiple expansion towards a more normalized 10x gives the shares additional upside.

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Member Avatar rknapton (< 20) Submitted: 8/26/2013 7:59:36 PM : Underperform Start Price: $36.18 WTW Score: +61.78

Short. Weightwatchers is failing in their performance. Revenues down. Tons of debt. Alexa ranking is down 818 spots from 3 months ago to 3071. Cheap valuation is just a value trap.

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Member Avatar elkwingcaddis (88.99) Submitted: 8/1/2013 2:28:46 PM : Outperform Start Price: $57.86 WTW Score: -108.33

Winner of Best Diet from US News World Report three years in a row. WW has a proven formula that works AND focuses on their plan as a life change and not just a diet. The business model is great AND insurance companies are starting to see the value in healthy weight loss programs. (My company currently offers a 50% discount.) This is a great long-term buy and fold incestment.

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Member Avatar MotleyArt (34.37) Submitted: 5/21/2013 4:08:45 PM : Outperform Start Price: $47.57 WTW Score: -73.55

Stock is rebounding.

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Member Avatar nickclaud (35.10) Submitted: 3/26/2013 12:30:46 PM : Outperform Start Price: $40.60 WTW Score: -74.80

Once the US economy recovers, revenue will return to normal levels

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Member Avatar Orthonormal (85.50) Submitted: 3/4/2013 12:26:46 PM : Outperform Start Price: $41.00 WTW Score: -78.72

Magic formula pick

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Member Avatar IsaCann (< 20) Submitted: 1/3/2013 6:08:13 PM : Outperform Start Price: $55.85 WTW Score: -97.33

There will be more than cultural pressure to reduce obesity rates in the US in upcoming years. Insurance companies will demand it. And the Government will silently support any such efforts in the background. Though there is plenty of money to be made from people getting fatter, the most powerful entities, with the most aggressive lobbying machines will rule, helping businesses like WTW grow in the next decade.

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Member Avatar bkzl (< 20) Submitted: 8/8/2012 11:16:40 AM : Outperform Start Price: $43.69 WTW Score: -81.72

Obesity will only grow into a larger problem (pun intended) as time goes on. Nevermind the severe secondary effects - diabetes, high blood pressure, joint pains. It's online business will continue to grow and I believe capture more of the face-to-face users. They've had some slow down in revenue but I think even if management doesn't foul up what they have in place now, moving forward it's still a good value.

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Member Avatar wtcrane1 (95.18) Submitted: 7/20/2012 3:15:19 PM : Outperform Start Price: $50.99 WTW Score: -103.10

High moat, low valuation, obesity epidemic.

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Member Avatar sunnyspot (36.39) Submitted: 2/4/2012 8:04:59 AM : Outperform Start Price: $71.14 WTW Score: -117.49

Forays into untapped markets are already bearing fruit; key components of WTW programs seem to be attracting more clients than those of the competition.

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Member Avatar msj1819 (< 20) Submitted: 9/26/2011 12:56:41 PM : Outperform Start Price: $54.50 WTW Score: -134.25

big publicity with Dr. Oz Million Dollar challenge

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