DIET

[brandyjoco]

Has anyone looked at DIET? It only has a market cap of 135 million.  It reached profitability in quarter 3 ending SEPT 05.

FROM MOTLEY FOOL:
Well, it is also a good business for eDiets.com. In the third quarter, revenues increased 14% to $13.5 million. During this period, net income was $2.1 million, or $0.09 per diluted share, which was up from a loss of $1.4 million, or $0.07 per share, for the same period last year.

What makes eDiets.com different? The company wants to position itself as the authority on dieting. For example, it has enhanced its content (such as from the HarvardHealth e-newsletter and Psychology Today). What's more, it offers a wide array of diet plans, such as the Glycemic Impact Diet, the New Mediterranean Diet, Atkins, Trim Kids,

[metro]

Only had 3 days but sold some as it crossed 7 today but will buy back - could this be another NTRI - that of course is the hope but need to see some earnings



http://tinyurl.com/9n946

[David Randolph]

«Ediets.Com, Inc. (DIET). The Group's principal activities are to provide online services, information and products related to nutrition, fitness and motivation.»

This "internet" company is a growth story that just turned profitable. Fundamentals improved year after year and quarter after quarter. Over the last two quarters the company delivered net profits which tells me their business model is working.

Market cap is just $149.87M. The chart is very bullish as you can see below.

I'll buy DIET around today's open for the 3 Stocks on Fire Portfolio, 6.66% of capital as always.

[valueseeker]

Good pick Dave. I have been in since under $6 and hope it repeats what NTRI did last year:

http://finance.yahoo.com/q/bc?s=NTRI&t=1y

[valueseeker]

NTRI's 10x rise was due to the initiation of the fresh food delivery program. DIET just started this program a few days ago and is supposed to target a different customer base.

Obviously, Opara's association helps as well:

http://www.dietprogramreviews.com/oprah.htm?SID=oprah

[Jimbo]

Pre-Market (8.50 am): $7.56...........up 0.66 (9.57%)

[David Randolph]

1. Profile

Ediets.Com, Inc. (DIET). The Group's principal activities are to provide online services, information and products related to nutrition, fitness and motivation. The eDiets program includes customized meal plans and workout schedules and related tools such as shopping lists, journals and weight and exercise tracking. The Group also provides interactive online support and education presented by experts including psychologists, licensed mental health counselors, registered dietitians, certified fitness trainers, a spiritual advisor and an M.D. It has obtained exclusive licenses to offer the Atkins Nutritional ApproachTM, ZonePerfect Nutrition, Shape Up! inspired by Dr. Phil McGraw's book, The Ultimate Weight Solution, the Perricone Nutritional Face LiftTM and the Slim.Fast(R) personalized online program.

2. Technical Analysis

2.1. Long Term Chart



We can see on the long term chart that the all time high for DIET is in reach. The long term trend is bullish.

2.2. Medium Term Chart



We have volume above average and the next strong resistance will only come in at $9.55. I wonder if the number of shares outstanding is the same now as it was when the stock last touched $9.55.

2.3. Short Term Chart



The stock suffered some profit taking during today's session but nothing to worry about, I believe. The trend is up and the trend is my friend.

3. Fundamental Analysis

3.1. Number of Shares Outstanding



This graph can be misleading, the company is selling shares in the open market at a very moderate pace, about 87,500 shares a quarter, on average. So I'm not worried about EPS dilution.

But, just for curiosity, when the stock last touched $9.55 it had just about 10 million shares outstanding, so when it goes there again, and I believe it will and even surpass that level, it will be more than double in market cap. Just to reflect on the significance of stock prices without considering the number of shares outstanding.

3.2. Working Capital



Well, I've seen better Current Ratio's than this ... it is below the 2 threshold. But at least it is stable.

3.3. Revenues



You can call this stable and strong year over year revenue growth. Revenues were up every single year since inception and there's no reason to believe this won't continue.

Another curiosity: fundamentals are much better now than in early 2004. Yet, the stock price is lower. But, and this is a very important «but», the market cap is larger now ! This goes to show the importance of the number of shares outstanding and its evolution. I'm glad the company is starting to slowdown on its open market sales.

3.4. Net Income



You can see a very unstable picture on net income history for DIET, despite of the relatively stable revenue growth. I don't know why this happens, yet. But, as you can see, the last quarter was the best on the company's history. Is this a new trend for net income and earnings per share, or will the company go back to losses again?

I bet this is a new trend, and the stock price chart tells me the market agrees with this assessment. If suddenly DIET starts making profits quarter after quarter and grows those profits there's no telling to how high the stock can go.

4. General Overview

I still have to study the information valueseeker provided, but it seems to be very positive. Thanks 

Overall I see DIET as a stock with great potential and also some risks ... the balance sheet isn't  very strong, probably because the company had so many losing money quarters. But revenue growth is impressive and the revenue multiple is still less than 3.

I think it all depends on the next quarter. If it shows, again, revenue growth and net profits, without dilution, the stock price will jump a lot further. If the company disappoints and turns in another negative net income quarter, without a very valid reason, the stock will tank.

I'm willing to bet on the bullish case, since weight loss is a major and growing concern of our days ... and internet related communities are growing much faster than others.

5. Trading Plan

HOLD the stock for now, study it more deeply. I would like to hold it for the long term, but I'm not ready yet to make that statement.

[brandyjoco]

I've got 1500 shares of Diet. Anyone else have any.  What do you think of future share price prospects?

[brandyjoco]

WHOOPs.. Sorry - I didn't realize it was put on the StocksOnFire picks today. I've been following this one since $6

[Jimbo]

I ment to post the update yesterday but since there was a problem with the 3SOF web site I couldn't do it. Anyway today's action has proven my point of view so far  .


eDiets.com (DIET) is clearly in bullish uptrend. But I would like to point that yesterday's white candlestick, together with the last two, formed Bearish Deliberation Pattern - bearish reversal pattern that marks a potential change in trend. However, its reliability is not very high and it requires confirmation (http://www.candlesticker.com/Cs68.asp).

Considering that, together with the new 52 week's high today and RSI in overbought territory we could see some profit taking over the next few days.





Anyways $6.40 - $6.55 range is a good entry if there is a pullback.

Good luck to all.

[David Randolph]

DIET gave some guidance for the 4th quarter on their 3rd quarter results:

«The company expects to generate earnings in the range of $0.04 to $0.06 per diluted share in fiscal 2005 compared to a loss of $(0.50) per share in 2004. The company forecasts revenue for 2005 of $53 to $54 million, up 17 to 19% compared to last year.»

This means EPS for the 4th quarter is expected to come in between $0.05 and $0.07, so we'll probably have the third consecutive quarterly profit. Revenues are expected at $12M, a slight decline from the 3th quarter level.

I wonder if management wasn't overly cautious here, so it can surprise the Street on the upside.

NTRI's 10x rise was due to the initiation of the fresh food delivery program. DIET just started this program a few days ago and is supposed to target a different customer base.

Obviously, Opara's association helps as well:

http://www.dietprogramreviews.com/oprah.htm?SID=oprah

Now I see what you mean by «food delivery program», it completely amazes me the kind of services available in the US  :

http://www.ediets.com/store/

Fresh Cuisine

So, DIET isn't just a website anymore, it is a nationwide restaurant too !

I think DIET is ready to walk on NTRI's footsteps.

I'll continue to hold DIET here, just one more update before I can call it a long term 3 Stocks on Fire holding like GIGM.

Anybody sees any negatives on DIET? Thanks !

[valueseeker]

I believe DIET's new program costs $800/month v.s. NTRI costs $300/month. So they are targetting different customer base with a different incremental revenue & EPS.

I don't need DIET to grow 10x like NTRI did last year, I will be happy with a 3x from here. 

[snowcat]

Fell back to the fib line, but I know some very smart money that is in this one.

Diet centers, like gyms always see a boost in business the first month of the year as people set on their New Year's resolutions to eat right and exercise give it a go.

Let's see how this continues.

Jim Cramer did a piece on how baby boomers are doing whatever they can to turn back the clock - focusing on a company that makes a botox like treatment, MRX>

Want to get an edge on Wall Street? Then turn the channel away from financial news, Jim Cramer told "Mad Money" viewers on Tuesday.

Wall Street TVs are stuck in the financial news ghetto, which is why the pros don't know that Oprah Winfrey has revealed the next great play on the artificial youth movement.

On her "look younger, live longer show," doctors demonstrated the newest in antiwrinkle injections: Restylane. Cramer said it's superior to Botox in every way, which is why it's time to buy Restylane's maker Medicis Pharmaceutical (MRX:NYSE - commentary - research - Cramer's Take).

Oprah, one of the country's most influential people, is pushing the treatment to a population of vanity-driven baby boomers willing to live outside of their means to look good, Cramer said. It costs $700 a shot, and it takes three to four shots a year to keep your skin smooth.

[AussieTrader]

Want to get an edge on Wall Street? Then turn the channel away from financial news, Jim Cramer told "Mad Money" viewers on Tuesday.

Logically this should mean turn Jim Cramer off also

Oprah, one of the country's most influential people

That's kinda worrying methinks......Go Oprah, Go Oprah.......

[la-onda]

fyi:
DIET: Merriman Starts @ Buy; Analyst Notes

Tuesday , January 10, 2006 07:42 ET

Issuer: eDiets.com Inc (NasdaqSC: DIET)

Analyst Firm:  Merriman Curhan Ford & Co.
Ratings Action: INITIATE
Current Rating: Buy
Analyst Comments: The firm likes the company's virtual business model that allows for 85% gross margins and high operating leverage. The company addresses a multibillion dollar diet and health industry. Having fixed its core diet plan subscription business during FY05, they see numerous opportunities for the company to monetize on its user base, content, brand, and technology assets in FY06. They believe that, upon successful execution on a handful of new growth initiatives, their estimates could have substantial upside and the stock could trade into the $9-10 range.

http://www.knobias.com/individual/public/news.htm?eid=3.1.cab155711c83cf6defb67521164d49632d7e90474973208e48eda52cd3213714