“ 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.”
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.
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.