Since my bullish piece on Nutrisystem (NASDAQ:NTRI) a few months ago, the shares are up about 28%. While that's gratifying, as I pointed out in my article on Weis Markets (NYSE:WMK), when the shares of a formerly dirt cheap stock start to rise, I must apply a greater level of scrutiny to the business, and I become far less forgiving of problems. In my opinion, when the market in general is so overpriced, this strategy of constantly monitoring your investments for signs of weakness is a good one.
As the price of Nutrisystem Inc. rose, the yield dropped by 22%, to the point where the shares now sport a forward yield of 2.7%. In my view, investors who bought around the time I wrote my article should hold the shares, but this isn't the best use of new money at these levels. I like buying shares when they are on sale, and, unfortunately, shares of Nutrisystem are no longer on sale. I'll go through my reasoning below by focusing on the most recent financial results relative to the same time a year ago, and by once again looking at the stock itself.
