Another Stock Buy - NTRI
We've been looking for a health stock and I found one - NutriSystem (NTRI)
115 shares at $48.05
First the numbers:
Revenue growth 2005 - ~742%
Earnings Growth - ~5,846%
Operating Margin - 15%
Return on Equity 40%
These are powerful figures.
Nutrisystem is very much like a Jenny Craig or a Weight Watchers but with a fundamental twist - they focus on portion control. I used NTRI for 3 months last year and I dropped 15 pounds. Their system works and I have kept that weight off.
What makes them especially unique are:
* Internet not face to face support: Jenny Craig and Weight watchers offer one-to-one counseling in stores and face to face. NTRI does it via the net - they outsourced the expensive storefornts and support staff.
* QVC: Unlike the others, they are a strong seller on QVC. As a result of starting this in 2005, sales have taken off like a rocket. In Q3 2005, they sold more in one day on QVC when they were the Special Of The Day than they had in the entire rest of the quarter.
* Targetting men: They are going after men and believe that the internet focus is more male friendly (men don't like the public and one-to-one counseling of the competition)
* Targetting seniors: they are also going to target seniors
I have been looking for a company that targets senior's health maintenance as well as a general healthcare company. I like this one for its growth prospects. I wouldn't be surprised if we started to see them on store shelves as well.
115 shares at $48.05
First the numbers:
Revenue growth 2005 - ~742%
Earnings Growth - ~5,846%
Operating Margin - 15%
Return on Equity 40%
These are powerful figures.
Nutrisystem is very much like a Jenny Craig or a Weight Watchers but with a fundamental twist - they focus on portion control. I used NTRI for 3 months last year and I dropped 15 pounds. Their system works and I have kept that weight off.
What makes them especially unique are:
* Internet not face to face support: Jenny Craig and Weight watchers offer one-to-one counseling in stores and face to face. NTRI does it via the net - they outsourced the expensive storefornts and support staff.
* QVC: Unlike the others, they are a strong seller on QVC. As a result of starting this in 2005, sales have taken off like a rocket. In Q3 2005, they sold more in one day on QVC when they were the Special Of The Day than they had in the entire rest of the quarter.
* Targetting men: They are going after men and believe that the internet focus is more male friendly (men don't like the public and one-to-one counseling of the competition)
* Targetting seniors: they are also going to target seniors
I have been looking for a company that targets senior's health maintenance as well as a general healthcare company. I like this one for its growth prospects. I wouldn't be surprised if we started to see them on store shelves as well.
posted by Andrew at
8:32 AM
2 Comments:
Not a good start! After following your blog for about a month, I decided to jump in on your recommendations. I started with NTRI. Unfortunately, its down 6 bucks after hours. Their forecast seems solid. I wonder what the investors were expecting. Hope it recovers like Google.
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NutriSystem down 17% at $41.27
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