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Wednesday, January 31, 2007

January 31st - LTM

Cramer looked at the common new years resolution to get in shape and looked at plays that could benefit from it. He said it would be a good idea to get in before these companies report their first quarter which is when the sector is the most in the public eye. His first recommendation was health club Life Time Fitness Inc. (LTM)

Closing Price: $54.20
After Hours High: $55.08
Percent Increase at High: 1.6%
After Hours Most Recent: $54.95
Percent Increase at Most Recent Price: 1.4%
Sector: Services
Days to Cover: 22.5
Short %: 16.21 %
% Held by Insiders: %
% Held by Institutions: %
50 Day Moving Average: $50.01
200 Day Moving Average: $46.80
Average Price Drop for Sector: 2.8%

Small percent increase on an expensive stock. The stock was up 50-cents today after a late afternoon surge after it was sitting around even. Mad Money is recorded early, but not as early as this spike occurred so I'm not sure why it may have gone up so sharply. The stock has passed its 52-week high after hours. Its also funny that he did his short squeeze show last night, but didn't make any mention to how this stock has a 22.5 day short cover number, which is higher then both of his picks last night. Not a stock I would consider shorting personally, but I wouldn't be surprised to see a high tomorrow morning after the bell in the $54.90 range and have it fall from there to the $54.50 level if today's action with WSII (which shows some similarities) is any indication.

Next Cramer warned about NutriSystem Inc. (NTRI) and said even though it has dropped a lot from its highs, that it is still not cheap down here. The stock is currently down $8 today alone, so I'm not sure shorting here would be a good call. There was a good comment that said that Cramer said to hold off on JSDA the other day and the stock went down a lot the next day and would have been a good short. I think there is some merit to that idea, but I think it should be taken on a case by case basis, and I don't think NTRI would necessarily be good for a quick day trade short at least since it may bounce some off this extreme sell off. The opportunities may come from stocks with very high p/e's that have gone up a lot since Cramer recommended them (DIVX comes to mind). But if Cramer says to wait on a stock like CSCO I don't see the stock dropping 8% like JSDA did.

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