GNC

GNC Holdings Inc.

Consumer


Presented:08/07/2014
Price:$32.75
Cap:$2.95B
Current Price:$0.06
Cap:$0.01B

Presented

Date08/07/2014
Price$32.75
Market Cap$2.95B
Ent Value$4.17B
P/E Ratio17.08x
Book Value$8.56
Div Yield1.5%
Shares O/S0.00M
Ave Daily Vol2,310,000
Short Int3.39%

Current

Price$0.06
Market Cap$0.01B
GNC Holdings, Inc. operates as a specialty retailer of health and wellness products. It operates through three segments: Retail, Franchise, and Manufacturing/Wholesale. Its products include vitamins, minerals and herbal supplements, sports nutrition products, diet products, and other wellness products. The company sells its products under GNC proprietary brands, including Mega Men, Ultra Mega, Total Lean, Pro Performance, Pro Performance AMP, and Beyond Raw, as well as under third-party brands. It operates a network of approximately 8,500 locations in the United States and internationally. The company sells its products through company-owned stores; online through GNC.com, LuckyVitamin.com, and DiscountSupplements.com; domestic and international franchise activities; third-party contract manufacturing; and e-commerce and corporate partnerships. GNC Holdings, Inc. was founded in 1935 and is headquartered in Pittsburgh, Pennsylvania.

Publicly traded companies mentioned herein: GNC Holdings Inc. (GNC), Vitamin Shoppe, Inc. (VSI)

Highlights

The presenter used to be short shares of GNC Holdings (GNC) and his bearish stance was based largely on the risks associated with the negative press surrounding its Jack3d dietary supplement (and DMAA, more broadly), and management’s unwillingness to concede that the substance is/ was dangerous and remove products containing it from their stores. Today, GNC is “a material long” in his portfolio, and he believes the stock is undervalued relative to its growth prospects; once the market realizes GNC is somewhat protected from internet risk and can put up positive comps, he believes shares will rise.

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Idea Discussion

Commentor 1 - 2 weeks ago

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