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

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