Food for Thought
NutriSystem (NTRI Quote) has gotten "crushed" in the last couple of days because it came out with "awful" guidance, Cramer told viewers. The company, which makes preprepared foods and sells it directly to consumers, was "flying high, then got pounded," he said. But even though NutriSystem looks cheap, Cramer believes that the stock is too dangerous to own now, just as it was to own it 20 points higher. "It is done," he said, adding that the market won't get fooled again by the stock. Think of it as a "one-hit wonder," Cramer said. It will go through "a long period of decline."
NutriSystem's average customer stays only 10 weeks before leaving, he said. And given the fact that almost no one out there hasn't been exposed to it -- as its ads are everywhere -- Cramer doesn't believe that the stock has any reason to do well.
"Forget it," he said. Instead, look at Weight Watchers (WTW Quote), Cramer advised. It has growth you can count on, and it has great customer retention.
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