Hilary Kramer's Daily Picks & Pans

Monday, January 7, 2008 Guest blogger: Larry Schutts, vice president of Stockwinners.com and a contributing editor for Theflyonthewall.com. Larry looks for stocks with technical and fundamental characteristics indicating gains in the next 30 days. However, price movements may be volatile. He includes a stop-loss price in each post. Consider selling a position should the stop-loss be violated. Look for more of Larry's stock picks in the days and weeks to come.

Feeling a little heavy after the holidays? Wondering where to find help honoring that New Year's resolution to lose some weight, without attending "public" sessions? Go online, of course! There is an Web outfit in Fort Lauderdale that is helping nearly 120,000 dieters already.

eDiets.com (NASDAQ:DIET) develops and markets Internet-based diet and fitness programs in North America and Europe. It offers subscribers diet plans according to the individual's weight goals and includes related shopping lists and recipes. It also provides meal delivery service, corporate wellness programs and telephone/online support. The company has partnerships with Bristol-Myers Squibb (NYSE:BMY), Microsoft (NASDAQ:MSFT), and Time Warner's (NYSE:TWX) AOL.

DIET shares are up 40% over the past 10 weeks, sparked by such issues as upside FY08 revenue guidance, favorable analyst remarks, a new CEO and an improved technology platform. The news has the stock cycling through a positive trading channel. The price is currently near the base of that channel, where oversold Momentum and MACD technical parameters suggest the potential for a rise back toward the top. Correspondence of the issue's 30-day moving average to the base of the channel backs the rebound notion.

Brokers recommend the shares with one "strong buy" and one "sell." Analysts expect a 26% growth rate through the next year. The DIET Revenue per Employee ($300k) compares favorably with the industry average. Institutional investors hold about 55% of the outstanding shares. Over the past 52 weeks, DIET has traded between $2.67 and $6.10. A stop-loss of $4.80 looks good here. Note that the firm is expected to report Q4 results in mid-March.

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