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Weight Watchers International, Inc. (WTW)

From The Major Trends: “Weight Watchers International, Inc. (WTW) is another stock we recently added. Weight Watchers was founded over 40 years ago. Each week approximately 1.3 million members attend 50,000 meetings...

Weight Watchers International, Inc. (WTW) is another stock we recently added. Weight Watchers was founded over 40 years ago. Each week approximately 1.3 million members attend 50,000 meetings around the world. In 2009, over $4 billion was spent on Weight Watchers branded food. As you can see from the chart the stock has recently broken out of a five-year downtrend. In mid-February, the company announced fantastic earnings, powering the shares 46% higher in one day.

“Weight Watchers is recapturing lost market share from prior years. Their turnaround has been helped by their new PointsPlus program, a successful ad campaign featuring Jennifer Hudson and continued growth from their online component. Meeting fees generate approximately 58% of revenues, while product sales generate 42%. Weight Watchers members are spending more money per meeting, $18 now versus $11 in 2003, and membership is increasing. While a moderate pullback can be expected after a surge, we are still positive on the shares.”

Ronald Sadoff, The Major Trends, 3/11

Sadoff Investment Management is an independent investment advisory firm registered with the SEC. The three-member investment team has over 70 years of combined investment experience during all types of markets. Ronald founded Ronald Sadoff’s Major Trends in 1978 (now known as Sadoff Investment Management LLC). Previously, Ronald gained financial and investment industry experience working as an institutional investment and research strategist. Bryan joined the firm in 1997 as an investment advisor after working at the Bank of Montreal and the Chicago Mercantile Exchange. Michael joined the firm as an investment advisor in 2000. Previously, Michael was a senior financial analyst at Norwest/Wells Fargo and Green Tree Financial Corporation.