With everyone from Prince Charles to Mayor Bloomberg addressing the obesity issue in America I decided to look at some stats: Over 60% of Americans are now considered overweight and about 25% are considered obese. 300,000 deaths per year are attributable to obesity and its estimated about $33bb a year is spent on weight loss products and services and these numbers have been going up for 20 straight years.
Nutrisystem, NTRI, trading at just 11x cash flows is one stock to look at. They are also owned by the Emerald Growth Fund and Herbalife (HLF), trading at a forward P/E of just 13 is another to look at.
I set up a portfolio, the Obesity Index of stocks that are cheap and are all in the business of providing weight loss products.
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