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.
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