Medifast (MED)

Company

MED 1-year chart MED 1-year chart

"Since 1980, Medifast has been engaged in the production, distribution and sale of weight management and health management consumable products marketed under brand names including Medifast, Take Shape for Life, Hi-Energy Weight Control Centers, and Woman's Wellbeing. Medifast's clinically proven approach to weight loss focuses on meal replacements coordinated with medical practitioners and health advisors throughout the United States. Medifast's wholly owned subsidiaries include Jason Pharmaceuticals; Jason Properties; Jason Enterprises; Seven Crondall; and Take Shape for Life, Inc." (company website)

MED 6-month chart
MED 6-month chart

Buy

Although MED missed expectations when it reported earnings in May, The Market seems to have shrugged it off, and the stock has been rising ever since. The 50-day moving average has turned up, and MED is testing the 200-day moving average.

  • Price momentum (PPO) — rising since bottom in March
  • Relative strength (RSI) — strengthening since bottom in March
  • Trend (ADX) — very strong, with buying pressure (+DI) still above selling pressure (-DI) despite consolidation around $9
  • Volume — generally up since last earnings, with very heavy volume last Friday, a down-day for The Market in general

Based on technical analysis, MarketEdge calls MED a "strong buy" in a "strong upward trend."

Sell

gain Bottom line
-49%

Well, this didn't work. After hanging on far too long, I finally decided to close this positiion and take the loss. The Santa Claus rally did not carry over into the new year as it usually does, and there are very dark clouds on the economic horizon.