"Weight Watchers International, Inc. is a provider of weight management services. The Company operates globally through a network of Company-owned and franchise operations. The Company's branded products and services include meetings conducted by its franchisees, digital weight management products provided through its Websites, mobile sites and applications, products sold at meetings, licensed products sold in retail channels and magazine subscriptions and other publications. It operates through four segments: North America, United Kingdom, Continental Europe (CE) and Other. It sells a range of products, including bars, snacks, cookbooks, food and restaurant guides with SmartPoints values, Weight Watchers magazines, SmartPoints calculators and fitness kits, and certain third-party products, such as activity-tracking monitors. It sells its products through its meetings business, online and to its franchisees."
The business seems to be turning here based on the Q2 operating figures. Across the board metrics have improved YoY. Now this could just be a quick bump thanks to Oprah's publicity, but given the leverage (read:debt), plus scope for fat margins, the upside could be very substantial if the business improves. Successful turnarounds are rare, but when they do materialize, believers are handsomely rewarded.
The short squeeze thesis is also interesting, but the turnaround itself seems to be happening here. So there could be upside here just based on operating metrics improving across the board and across all regions. The heavy debt load and huge potential for cash flow generation means this could turn into a multi bagger turnaround situation. Definitely worth a position!
The business seems to be turning here based on the Q2 operating figures. Across the board metrics have improved YoY. Now this could just be a quick bump thanks to Oprah's publicity, but given the leverage (read:debt), plus scope for fat margins, the upside could be very substantial if the business improves. Successful turnarounds are rare, but when they do materialize, believers are handsomely rewarded.
The short squeeze thesis is also interesting, but the turnaround itself seems to be happening here. So there could be upside here just based on operating metrics improving across the board and across all regions. The heavy debt load and huge potential for cash flow generation means this could turn into a multi bagger turnaround situation. Definitely worth a position!
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