There are no shortage of companies trying to sell “quick and easy results” losing fat. Whether it’s the shake weight, the treadmill bike, at-home treadmills, or other home workout equipment. One of the most prestigious companies, Nautilus, Inc (NYSE: NLS) prides itself on their workout equipment. Rightfully so, their portfolio includes Bowflex, Nautilus, Schiwnn, Universal, and Octane Fitness, and the company has won many many awards for their products.
Looking at an investment opportunity, I’m torn between principle and making money. On the one hand, as a former fatty turned competitive powerlifter, I recognize how unnecessary their equipment is. I’m not talking about Bowflex here; that is a pretty handy and effective exercise tool. Aside from Bowflex, the company’s portfolio, however, are treadmills. A person can just as easily run around the neighborhood for free. In fact, an individual can walk, jog, and sprint in any combination whenever they want; running outside is much freer. On a treadmill, you’re a slave to the buttons. An expensive and highly functional treadmill is a marketing ploy. But there’s nothing wrong with that, and if people find value that’s great, but why on earth would anyone pay for a treadmill? Desire, discipline, and shoes are all anyone needs.
But if principle be damned, and you’re looking for a solid investment opportunity, NLS is a great company to consider. They are one of the most prestigious brands in the market. And fitness is one of those markets that aren’t going away. People are inherently insecure, especially about weight, and there will always be a market for companies that can play off peoples’ insecurities. Add on top of that peoples’ inherent need for quick, effortless, and convenient results, that highly functional marketing ploy is a great investment in self.
As long as they have a great sales team the company will continue its prestigious tradition.
Ironically enough, given our inherent need for quick, effortless, and convenient results, this feels like a company in a market that doesn’t require a prospective investor’s tedious due diligence. Just keep up with their sales numbers.
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