DIET

[David Randolph]

I'm glad DIET held the $3.10 support and rebounded a bit from that level yesterday, we don't want more technical breakdowns before the news we're expecting out of the next conference call.

Still no news out, no changes at www.ediets.com, I'll keep waiting and holding DIET.

[David Randolph]

DIET is defying patience, with no news out and no technical developments, but at least it's not going down over the last couple of weeks. That's what I want the stock to do, to stay around current levels until the positive fundamental developments we're expecting are released, probably by the end of February.

Those developments are:

- Merging the www.ediets.com consumer business and the www.nutrio.com business, into one single website;
- Re-launching the meal delivery service, previously called Fresh Cuisine and now renamed eDiets Express.

I'll keep holding DIET.

[traderjbr]

Looks like this formed a small contracting wedge over the past month and now its seeing a break to the upside..will see if the volume starts to confirm,still a bit early but I think this has bottomed.

[David Randolph]

Nice 3.73% rise yesterday, for no apparent reason, since there were no news out or changes to www.ediets.com or www.nutrio.com.

It would be great if this were due to insider buying ... we'll know about that in a couple of days, that's how long it takes for the SEC forms 4 to be published.

I'll continue holding DIET.

[David Randolph]

There were some changes at www.ediets.com but still not what we're expecting. There was some pick up in volume yesterday, which I welcome.

I'll keep holding DIET.

[David Randolph]

There weren't any news out during the weekend, and just slight changes at www.ediets.com (now they're mixing exercising and dieting with sex), but the stock rose just a bit more to $3.4.

My take is the low was made until the news expected for the 4th quarter earnings conference call. As you know I'm not particularly interested in the revenue and EPS numbers for this quarter, but the re launch of the meal delivery service and improvements at Nutrio, DIET's new subsidiary.

I'll keep holding DIET.

[David Randolph]

Volume in DIET shares was so low yesterday that I shouldn't even do an update. But you know I always do it.

I've been holding DIET for long, and losing, there's no point in changing that attitude as the next conference call is getting near.

Patience. A 20% loss is nothing compared with this stock's long term upside potential.

I'll continue holding DIET.

[David Randolph]

DIET rose a bit yesterday without any news out. I can't enter www.ediets.com or www.nutrio.com. Is it possible that they're now merging the two websites and still disseminating the new site and probably new server over the internet?

It's possible, I know that changing the whole structure of a website is a complex issue and the website always goes down for some time before the changes are working properly.

Or else it could be just a technical problem.

Anyway, I'll keep holding DIET.

[David Randolph]

Volume picked up considerably and DIET is holding around the $3.4 level. It just needs one more step to climb above basonista's ascending trendline.

I expect positive fundamental developments by the end of this month, I'll keep holding DIET.

[David Randolph]

www.ediets.com has been down so much time lately that I'm starting to get worried about a serious revenue shortfall when it reports 4th quarter results.

Anyway, I came so far to hear the news about the relaunch of the meal delivery service that I'll just keep holding for that.

[David Randolph]

DIET is the Main's ugly duck, so perhaps I should just let go of it and put the money to work in some other stock.

But I've waited too long to sell now. The two motives that I got to continue holding DIET are simple and objective:

1) The Nutrio segment is growing well and management promised to integrate www.nutrio.com and www.ediets.com in a single website;
2) Management said they're working to relaunch eDiet's meal delivery service in Q1 2007.

I'm a great believer in the meal delivery service to people on diet because a similar service transformed NTRI from an $80 M market cap to a more than $2 B market cap company in just a couple of years. The same could/should happen to DIET.

[David Randolph]

DIET is now the sole loser of the Main Portfolio, and by 24%. It's really a shame, I should just dump and put the money to work elsewhere.

But I can't, because, after all, for more than a month that I wasn't expecting anything before the next conference call. I should be happy because it didn't went down further.

I'll keep waiting and holding DIET.

[David Randolph]

A bit of a bounce yesterday but nothing changed, I'll keep waiting for the Q4 results conference call.

[David Randolph]

Nothing new from DIET, since this is the annual report they have until mid March to report. I'll continue holding DIET.

[David Randolph]

DIET is the ugly duck of the Main Portfolio, the sole loser.

But the jury is still out on the question if the 24% open loss is a reflection of a bad investment or just poor short term timing.

I still believe the loss is due to bad timing, as I entered the stock way before the bullish catalyst that I'm anticipating, which is the merger between www.ediets.com and www.nutrio.com and primarily the relaunch of the meal delivery service. The management of the company promised to deliver news on this issue over the next earnings release, due in mid March.

DIET is now just a $78.7 M market cap company. Analysts aren't expecting much from the company in 2007, as they estimate an EPS loss of ($0.15), but I believe the company will surprise everybody on the upside, especially if the meal delivery service gets more traction this time.

I'll continue holding DIET.