Cramer Gets Fit With Life Time Fitness (LTM)

By Douglas A. McIntyre Published Jan 31, 6:14PM EST

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On tonight’s MAD MONEY show on CNBC, Cramer said he is expecting a rate cut rather than that tightening bias after the MAY FOMC meeting. He is reviewing ways to make money off of America needing to lose weight.

On weight loss, Cramer said there are ways to profit off of the weight loss fad after the holidays. He wants to get into the weight loss game before the companies report Q1 results. You can burn calories or cut down calories. There are some that earn major bucks and some to avoid.

As far as a health club play, Cramer likes Lifetime Fitness (LTM-NYSE). Their revenues grew 30% in 2006. There is a fragmented market in fitness centers. The over 55 year olds make up over 20% of gym attendance now. Most clubs don’t work that well for weight loss. Town Sports Int’l (CLUB) is the second one but LTM beats it on almost all metrics he cares about. LTM brings in bigger revenues per member and it isn’t expensive. LTM has a better fitness model with larger clubs and more growth on the map in the South and Mid-west. An analyst from Prudential recently gave it an Underweight rating, but Cramer thinks it should have been an overweight rating. Cramer said the call was not right. LTM rose 0.9% to $54.20 in normal trading but it popped 1.4% to $54.97 after Cramer touted it after-hours.

Jon C. Ogg
January 31, 2007

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.