Thursday, February 15, 2007
Quick Alert: NTRI Still Cheap; Cramer Still Fucktarded
I don't know why Cramer bet against fat people on Nutrisystem, but he did. Now, he is having his lunch eaten for him-- by a bunch of hungry fat fucks, who are long NTRI.Basically, comparing NTRI to WTW (Weightwatchers) is the best way to find a true valuation. Right now, even after a $4 decline yesterday, WTW is trading 21 x 2007 estimates. Based upon NTRI guidance of $3.00 in earnings for 2007, which they should beat handily, NTRI (at $50 per share) is now trading 16.5 x 2007 estimates-- despite growing at 45% per year, compared to WTW's anemic 10% growth rate.
If NTRI were valued appropriately, it would trade anywhere from 30-35 x 2007 estimates or $90-105 per share. If it traded at the same multiple as WTW, the stock would trade @ $63.
Either way, the stock is still cheap and Cramer is fucktarded.
NTRI Nutrisystem tgt raised to $75 from $72 at Lazard (43.88 ) -Update-
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As a customer of NTRI, I have to say that this service is ideal for a single person. The food tastes good, is nutritionally balanced and properly proportioned. I think the last time I ate 3 meals a day this consistently was back in college when I was on a meal plan.
F-Cramer (and Richard)
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F-Cramer (and Richard)
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