Nautilus (NLS) is a marketer, developer and manufacturer of branded health and fitness products sold under the names of Nautilus, Bowflex, Schwinn, StairMaster, TreadClimber and Trimline. The company's products are distributed through diversified direct, retail and commercial sales channels, and it is best known for the Bowflex and TreadClimber lines of home fitness equipment and FITRest mattresses.
This stock emerged in one of our "technicals only" scans for bullish issues but after a review of recent news and upcoming events, the company also appears to have a favorable fundamental outlook. Based on sales improvements in retail and international channels, as well as new product introductions, management expects 2005 EPS growth of 25%-30%. In addition, Nautilus is considering its prospects in the sports nutrition market as well as international opportunities for fitness equipment, both of which offer billions of dollars in potential sales. Last, but not least, the company's legal team may finally be making some headway in the ongoing litigation against Icon Health & Fitness, which may result in future royalties if the judgment is in their favor.
Fundamentals Chart Earnings Dates Analyst Ratings
Suggested (Bullish) Option Position:
Sell Put APR 22.50 NLS-PX
Current Bid = $0.30 Open Interest = 572
Potential Profit (5 contracts) = $150
Initial Margin (5 contracts) = $4,025
Return on Investment (max) = 4.4%
Cost Basis in Stock = $22.20
Days to Expiration = 26