Now This is a Phat Move!

Weight Watchers stock *ahem* blew up today.  Yesterday, the price of Weight Watchers $WTW, was about $45 a share.  Today, WTW opened up at $59.00, and made an high of $64.96.

Weight Watchers’ ($64.23, +$19.31, +42.99%) fourth-quarter profit more than doubled as revenue rose at its North American and Internet businesses; the results beat analysts’ estimates. Fellow weight-management products provider                                                Nutrisystem Inc.’s (NTRI, $20.48, +$0.94, +4.81%) shares also rose.”

http://online.wsj.com/article/BT-CO-20110217-712047.html

So what’s the, *ahem*, Big picure here?  Well we know food prices have been going up, and that’s a big concern.  However, people are spending on food, and eating more than what is required for a standard healthy diet.  WTW, said that “Gross margin rose to 52.9% from 41.9%. Marketing expense jumped 26%.”  And, yet they still generated huge on earnings, blowing out the streets expectations.  With all this dieting, are people working out in the gym?  Let’s look at Lifte Time Fitness $LTM.  I expect that most of the people who spend money on Weight Watchers will spend the money to work-out at Life Time Fitness.  The desperate house cougars have to exercise at a place where they can be seen.  Come on now!  Ya I’m stereotyping…but it’s true.

Daily Chart: Life Time Fitness

Daily Chart: Life Time Fitness

Gonzo!  Life Time recently made all time highs.  Today it reported earnings.   I like LTM as long as investors see it as a good value at or above $40.00.   It’s kinda fun seeing where the social trends are in our world isn’t it?  Of course this is a small glimpse to an even larger picture that is part of a much much bigger picture.  Where does it end?  Well everything is connected.  I’ll write more on this.  I believe Al Pachino has something to say about this.


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