Silly Season (cont)
Silly Season (cont)
Extending last week's comments on the Silly Season, W&D notes that a US media personality, Oprah Winfrey, hit the headlines with her weight loss of 12 kilos. This is not news in itself.
But apparently Miss Winfrey is a shareholder in a company with which W&D is not familiar, called Weight Watchers. W&D assumes that this company is like Bird Watchers or Train Spotters and is a voyeuristic website. Either that or an industrial weighing-machine company. Or perhaps they've spelled the name incorrectly. And it should be Weight Watches: a company that makes wrist watches ('wearable electronic devices') that tracks the wearer's weight.
Whichever way, when Miss Winfrey became a shareholder last October, the company's share-price rose 100% in one day. Nice work, if you can get it.
Inevitably, the company's share price fell back to almost where it was when Miss W first become a shareholder. But now that Miss W's girth has reduced from what which W&D understands was somewhat large, the company's stock-market value this week leapt by US$152m.
That's US$12.6m per kilo.
As W&D was not aware of Miss W's starting weight, it is not possible for W&D to assess if there is room for further weight loss. And hence a further boost in the share-price. But, W&D muses, if Miss W puts back on the kilos will the share-price fall? Perhaps there is wrist watch that will tell us.