Medifast adds weight after activist investor reports stake

Medifast

18/11/2019 17:03

** Medifast Inc  MED.N  shares up 8.4% to $83.76 after
Engaged Capital LLC reports stake in nutrition and weight-loss
firm
    ** Activist investor reports 9.9% stake in MED, saying it
believes shares when purchased were undervalued and represented
attractive investment opportunity (See filing https://www.sec.gov/Archives/edgar/data/910329/000119380519001450/sc13d09455006_11152019.htm)
    ** Engaged adds it has economic exposure to an aggregate of
~1.74 mln shares, representing 14.99% of MED outstanding
    ** Says will continue discussions with co's management and
board about operational and strategic matters, including capital
allocation and potential sale of co and/or assets
    ** On Nov 8, MED shares plunged 27.1% to $74.36 after co cut
FY EPS forecast, as CEO said tech spending, supply chain
upgrades and unexpected high levels of credit-card-related bad
debt expense combined to create short-term headwinds
 urn:newsml:reuters.com:*:nL3N27O3ID  urn:newsml:reuters.com:*:nPnc7DqbWa
    ** Even with Mon advance, stock has lost a third of its
value this year and has current market value just below $1 bln
    ** MED trades 11x NTM earnings vs rival WW International
 WW.O  (formerly Weight Watchers) at 18x, per Refinitiv data

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