Cramer on Diet Stocks: NutriSystems (NTRI) is Done; Likes Weight Watchers (WTW)

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By Douglas A. McIntyre Published
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On CNBC’s MAD MONEY tonight, Cramer first picked Life Time Fitness (LTM) for his way to profit off of weight loss.  But he has others, and some to avoid.

He wants to warn you about cutting down calories.  He discussed NurtiSystems (NTRI) as one that is just as dangerous to own now as it was before it recently got hit.  He said they sell direct to the consumer instead of through retail outlets.  The NTRI model is one he doesn’t like and he thinks it is not a buy because it is done as a stock.  They are a one-hit wonder and their ads are out everywhere.  That means it could be at the end of the trend.  He likes Weight Watchers (WTW). It has a better business model because it is like a profitable A-A.  He has been positive on WTW before.

After Cramer panned it, NTRI fell 0.7% to $43.75 and that is after it fell 15% today.  Its 52-week high is $76.33 and the low is $35.01.  WTW popped over 1% to $54.77 in after-hours.

Jon C. Ogg
January 31, 2007

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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