User 111236

So Much For NutriSystem As a Growth Stock

I don't understand your statement "growth story is over for NTRI". Is it that all Americans are now slim and healthy and nobody needs to lose weight anymore? Your another statement about the low barrier for local businesses to enter this market, any names? How many have proven that their food is better than Nutrisytem? NTRI has been around since 35 years and there are many satisfied customers and they bring more customers. How many companies offer diabetic and vegetarian foods? As a vegetarian there are not many options available outside and if you get prepackaged healthy food which can also make you lose weight then where is the problem?

In your December column, you said people lost weight thats why they didn't reactivate. Now is that good or bad?? One person lose weight and tell 10 buddies and now NTRI has 10 more customers.

Now their new customer growth rate is slowing by mere 7% over the last year due to this new drug Alli. Alli got too much hype and marketing dollars so people thought why not try this if you just have to take pills. As with all the weight loss drug its going to slow down as slowly people realize that they have to limit their fat intake to only 15g otherwise they can soil their underpants. I don't see how anybody can continue taking this pill.

With PE of less than 10, I don't see how any analyst would downgrade this stock. It seems people out there know more than analysts. Most of times analysts react to short term blip and change their ratings instead of seeing the whole picture. You can see one analyst change from buy to Strong buy and then back to buy in a course of 3 days. Go figure..