Weight Watchers Stock Anorexic ?

People exercising in a Weight  Loss Center

Weight Watchers’ (WW) stock, the most well known brand in dieting, bottomed out on the bathroom scale after ditching their 5-decades old name !

What Happened ??

Child gets on bathroom and is horrified at weight.

After Weight Watchers https://corporate.ww.com/CustomPage/Index?KeyGenPage=437314 announced a rebranding with a new name of “WW” and new tagline, “Wellness That Works”, the stock plummeted. Afterall, Weight Watchers has spent nearly half a century building a weight loss awareness that became an official name. Losing that recognition came at a cost.

The abrupt shifting to being a wellness company, rather than dieting/weight loss, and unfocused adoption of the new strategy, as well as blunders in the execution of the marketing campaign of the rebrand strategy, got them into trouble with customers and the financial community.

Stock Revival

WW is hoping to reverse their setbacks by turning, once again to Oprah, Jennifer Hudson and DJ Khaled, who have had convincing weight loss stories. And, after their disastrous stock fall have started adding back reference of weight watchers “WW (Weight Watchers Reimagined)”.

Mom’s Takeaway

WW is no stranger to big stock swings and has seen plenty of big losses. At the same time, the stock jumped following the company’s earnings in May, 2019, and soared in August, 2019, following upbeat 2nd Quarter earnings, followed by analyst target upgrades over $27 per share. The January, 2020, peak diet season, after the holidays, should fuel bottom line acceleration and renewed valuation levels.

Buckle up, WW-Weight Watchers’ ride may get bumpy. The jury is still out, but insiders and hedge funds are buying into the shares.

Are You a Bull or a Bear ?

September 20, 2019 – Stock: Weight Watchers WW – Share price was $37.12

If you’re a Bullish Mom and think WW will go up, try the January 17, 2020 Expiration Date – CALL $35.00 Bid;  and $33.00 Ask strike prices.  Premium is $1.69 (mid@ $1.05) debit to pay = Long Call Vertical Spread on  www.TDAmeritrade.com

On the other hand, Mom, if you think WW is bearish and will go down, try the January 17, 2020 Expiration Date – PUT $38.00 Strike Ask;  and $35.00 Bid strike prices. Premium is $2.00 (mid @ $1.65) debit to pay = Long Put Vertical Spread on www.TastyWorks.com

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