Medifast's stock has slid over 80% from its 2021 high, putting its major valuation metrics at levels comparable to 2008, 2011, and 2020.
Despite the massive decline, the company's financial position still seems to be quite sound - big cash position, healthy current ratio, massive profit margin and return on capital. On top of that, any long-term investor is prepared to collect a 10% dividend.
For those more technically inclined, there is no clear support except for the 2020 level, which admittedly is still 35% below its current level. However, a higher than average accumulation of volume the last few weeks, combined with a divergence between the Awesome Oscillator (AO) and price may be indicative of a reversal.
Despite the massive decline, the company's financial position still seems to be quite sound - big cash position, healthy current ratio, massive profit margin and return on capital. On top of that, any long-term investor is prepared to collect a 10% dividend.
For those more technically inclined, there is no clear support except for the 2020 level, which admittedly is still 35% below its current level. However, a higher than average accumulation of volume the last few weeks, combined with a divergence between the Awesome Oscillator (AO) and price may be indicative of a reversal.