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Just like any other year, this year many Americans made the resolution to lose weight. Therefore, the first three months of the year is the best time to own weight-loss companies, Jim Cramer told viewers of his "Mad Money" TV show Wednesday.
Life Time Fitness
as his "No. 1, best-of-breed, health club pick," saying he is a "huge fan" of this weight-loss stock.
The health fitness business is a big industry that's getting bigger, he said. And as the weight-loss play is about people trying and failing time and time again to lose weight, it is everlasting, Cramer added.
Of the two high-growth fitness clubs, Cramer prefers Life Time to
Not only does Life Time have better operating margins and higher revenue per member than Town Sports, but also based on its growth, it is not an expensive stock, he said.
In addition, Life Time is in a better position with a better business model and has larger clubs with better amenities, Cramer said.
It is true that Prudential recently gave Life Time an underweight rating, meaning a sell, he said. But "this one deserves to be a buy."
Even though it will cost more for Life Time to expand into wealthier areas, that's where the company will be able to charge outrageous prices and make more money, Cramer said, arguing Prudential's reasoning for its downgrade.
"Go with Life Time," he said.
Food for Thought
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
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
, Cramer advised. It has growth you can count on, and it has great customer retention.
Am I Diversified?
In his "Am I Diversified?" segment, Cramer's first caller named the following five top stocks:
Bank of America
( RESP) and
Cramer said the portfolio was not at all diversified. Other than Bank of America, the other four are related to health care, he said, advising the caller to get into other sectors.
Cramer's next caller owned the following five stocks:
, the latter three of which Cramer owns for his charitable trust,
Action Alerts PLUS.
Cramer blessed the portfolio as diversified.
In his "Mad Mail" segment, when a mailer asked how to buy
( WSII) with a limit order, Cramer urged the viewer to refrain from acting on stocks the same night he recommends them.
Day one, do your homework; day two, let others get discouraged and throw the stock out; and then on day three, back up the truck, he said.
During his "Sudden Death" round, Cramer was bullish on
Cramer was bullish on
Advanced Micro Devices
Cramer was bearish on
For more of Cramer's insights during the Lightning Round, click here
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At the time of publication, Cramer was long Hewlett-Packard, NYSE Group, Goldman Sachs and Altria.
Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."
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