Wry & Dry

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.