Medifast costs you less to eat per day than shopping at a grocery store. Now with so many daily activities on a dieter’s plate, one less thing they’ll have to worry about is the cost of the Medifast Program. Consumers and Dieters are at the proverbial edge of the cliff in regards to how much they have to spend using their disposable income. Disposable income has been slashed and more discretion has been emphasized on our parts, resulting in fewer dollars behind fewer favorite products. Just today, Jamie Dimon warned of the current state of the economy as in a recession. Not to cheerful to say the least. However, one thing is for certain, in a very competitive Diet Management market winners may still arise in turbulent times. In these so called sluggish times, Medifast proved to stand the fierce headwinds while reporting a 19th consecutive profitable quarter.
Medifast grew revenues 25% from the prior year’s period and reported $.10 in EPS. A penny below consensus but still reaffirming guidance, the company looks forward to a robust EPS growth in the following two quarters.
What Will Take Shape:
Ad spending has been weighing heavily on the bottom line and that’s why we’re seeing sluggish EPS growth. Spending is forecasted to be anywhere from $18M-$18.5M for the year. Now the company forecasts 30-35% EPS growth for the year. But how can that be when first quarter EPS growth remains on a flat line. Starting next quarter into the remainder of the year, especially Q4, EPS growth will explode due to the efficient use of money spent on advertising. If we use less money to promote, but the costumers are still flocking in to buy the product, we are essentially earning more profits. This will be reflected in the stock price as I see it going to $6 by next reporting date in August.
Fellas i have a lot more i can write, but give me some comments.
CHEERS!
Friday, May 16, 2008
Tuesday, May 6, 2008
MEDIFAST REPORT
MEDIFAST INC
The Difference is in the Mix
"Fast for a Reason!"
Medifast is a meal-delivery service that offers all the benefits of a personal chef, shopper and nutritionist, freeing you to pay more attention to your life. Their diet management plan is high in protein and you can expect to lose up to 20 pounds the first month.
NOW THAT'S FAST!
Medifast has specific plans that cater to the unique needs of women, men and diabetics.
Medifast has been proven in several clinical studies especially a recent one which calls for a 200% improvement vs. the Diabetes's Association diet plan, and if that's not enough, the dozens of real-life testimonials it shares on its site should be.
Now to the nitty gritty.
Their 2008 Forecast calls for an 8-10% revenue growth, and 30-35% EPS growth. Shares trade at a 12 Forward P/E ratio, and with an ROE in the low teens, the company has settled in the $4 range for the time being. Now why i would invest.
Catalyst:
Medifast revamped their marketing campaign and have been focusing on reeling back old costumers to use the products but this time with an added feature. Every member will have a health coach assisting in the daily grind of losing weight. Losing weight is difficult, and costumers will react well when an encouraging voice is there to motivate to continue on their plan.
With new commercials featuring the loving Kristi Swanson and new products such as the flavor packed water infusers you put in your drink to sugar it up without the calories, Medifast will win over costumers who have failed in other weight loss diets.
The company and the market are pricing in a slow growing year for Medifast. But watch for an Upside surprise being reported next month based on a solid diet plan that is growing in recognition in the diet community and also on Wall Street.
The Difference is in the Mix
"Fast for a Reason!"
Medifast is a meal-delivery service that offers all the benefits of a personal chef, shopper and nutritionist, freeing you to pay more attention to your life. Their diet management plan is high in protein and you can expect to lose up to 20 pounds the first month.
NOW THAT'S FAST!
Medifast has specific plans that cater to the unique needs of women, men and diabetics.
Medifast has been proven in several clinical studies especially a recent one which calls for a 200% improvement vs. the Diabetes's Association diet plan, and if that's not enough, the dozens of real-life testimonials it shares on its site should be.
Now to the nitty gritty.
Their 2008 Forecast calls for an 8-10% revenue growth, and 30-35% EPS growth. Shares trade at a 12 Forward P/E ratio, and with an ROE in the low teens, the company has settled in the $4 range for the time being. Now why i would invest.
Catalyst:
Medifast revamped their marketing campaign and have been focusing on reeling back old costumers to use the products but this time with an added feature. Every member will have a health coach assisting in the daily grind of losing weight. Losing weight is difficult, and costumers will react well when an encouraging voice is there to motivate to continue on their plan.
With new commercials featuring the loving Kristi Swanson and new products such as the flavor packed water infusers you put in your drink to sugar it up without the calories, Medifast will win over costumers who have failed in other weight loss diets.
The company and the market are pricing in a slow growing year for Medifast. But watch for an Upside surprise being reported next month based on a solid diet plan that is growing in recognition in the diet community and also on Wall Street.
Subscribe to:
Posts (Atom)