NutriSystem CEO Dawn Zier Just Got This Letter From Activist Clinton Group

NutriSystem CEO Dawn Zier: Clinton Group recently upgraded its position in NutriSystem Inc. (NASDAQ:NTRI), currently owning 5.2% of the company, which is equivalent to some 1.5 million shares, versus the previously owned amount of 1.4 million shares, a filing with the SEC revealed. At the same time, the shareholder sent a letter to NutriSystem’s CEO, expressing their positive attitude towards company’s activity and some ideas to boost shareholder value.

NutriSystem Inc. (NASDAQ:NTRI)

NutriSystem is a company specialized in the production of weight management systems. According to the letter sent by Clinton to the company’s CEO Dawn M. Zier, the investor considers that the company can reach the $106 million EBITDA by 2016, which was the average amount during the 2006-2010 period. The adjusted EBITDA of NutriSystem last year totalled $27.3 million.

“With the free cash generated over the next two years (which Citigroup Research estimates at $25 million after dividend payments), plus the existing cash on the balance sheet ($35 million), this implies a stock price in the mid $30s by Fall 2015. Such a stock price would be approximately equal to the average price from 2006 to 2010 and significantly below the stock’s pre-recession peak of $75. For today’s owners, a mid $30s price by the Fall of 2015 implies an annualized return of over 50%.,” the letter also said.

Aside from Clinton Group, Renaissance Technologies, managed by Jim Simons, disclosed ownership of almost 2.1 million shares of NutriSystem. Coatue Management, managed by Philippe Laffont, and Chuck Royce’s Royce & Associates, held 634,900 shares and 355,800 shares respectively.

Here’s the full letter:

EX-99, NutriSystem, Inc.-Clinton Group by alexoleinic

Recommended Reading:

Following Icahn Into Nuance Could Reward Investors

Phil Frohlich, Prescott Group Now Own 10% of PharmAthene

Hedge Fund News: Carl Icahn, Bill Ackman & Man Group’s Sell Ratings

Disclosure: none

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!