The stock has done well recently and has moved by around 30% in two months. The volumes have not been very high, but the moves have been strong. Still, the stock remains well below the 52 week high of $11.75 made in July. The current strength can take it to those levels if the news flow remains positive. It has shown resilience and momentum by crossing important hurdles. There has been some positive news regarding increased demand for its 5-Day Jumpstart Weight Loss Kit. Production is being increased, and it is being made available at more Walmart Stores. The potential of the segment is huge, and as per a recent report, the Weight Management Market (Diets, Services, and Fitness and Surgical Equipment) is around $265 billion. Weight loss diet is the largest segment out of the three. The overall market is expected to grow to $361 billion in next four years and North America is the Largest Market. There may be some slowing in growth in this market, but Asian markets may continue the good growth. NutriSystem's meal plans are continuously being offered in different ways / different durations etc. The commercial focus is on increasing sales and net margins. Now that the company is looking for innovative ways & products to turnaround, it should keep its options open for looking at new additions to its meal plans. Some companies like Chromadex Corporation (CDXC) provide proprietary natural ingredients to help in weight loss and diabetes management. Chromadex recently launched a new vitamin Nicotinamide Riboside found in milk. For NTRI, the next quarter earnings will determine whether it is on track to meet its promise of turning around on a full year basis in 2013. The stock will get much stronger as soon as there are more signs of that.
