Check out Jim Cramer's latest trading recommendations on "Action Alerts Plus".
NEW YORK ( TheStreet) -- There are big problems at Weight Watchers (WTW), Jim Cramer told Debra Borchardt at TheStreet.com Thursday. He said the company's management has been wrong about what its customers want for a long time and now has big execution problems.
Cramer said the issue is not that people aren't willing to spend money to lose weight in a tough economy, as Weight Watchers' management claims. It is that they're not willing to spend money on Weight Watchers.
That's a big distinction, said Cramer, as it's clear the company's website transformation and new spokespeople simply aren't resonating with customers. People don't stop trying to be healthy just because the economy gets bad, he argued. They're just more discerning on where they spend their money.Cramer said investors have to avoid Weight Watchers' stock for at least a few quarters, or until management can prove the company has regained its footing with its customers. Watch the full Cramer interview
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV