Attorney Michael de Broglio on: South Africa, Law, Politics, Attorneys, Sport, Photography, Technology, Gadgets, Media, Crime, Road Accidents Fund,
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We saw the Oprah effect on the share price of Weight Watchers. When it was announced on Monday 19 October that she had bought 10% of the company, the share price doubled in a day! I must say it was interesting to read about it because one of the financial publications I often read, Barrons, had for some while been saying that there is a lot of value in the price of Weight Watchers. It has come down from a price of $92 to $6 before Oprah bought it, and while it has now doubled to over $13, it obviously has potential for much upward growth. She bought it on the basis that she said she has used the company’s products and it has worked for her and obviously having someone like her endorsing the company is going to throw it right back into the limelight again, so there may be a lot of room for growth still. It does illustrate the power of major media players like this to dramatically move a company – and in so doing also make a very tidy profit for herself because the share price of her shares in Weight Watchers went up $60 alone in one day after it was announced.
Posted by Michael de Broglio on Friday 30-Oct-15
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Comments
lucretia said:
on Thursday 26-Nov-15 08:45 AM
This is the very reason why on 702 there are ads running stating that your company can use the likes of, whichever celebrity, to advertise your product. The public respond to celebrities they like. I for one have always enjoyed Oprah, her life story is interesting.
Marisa said:
on Thursday 26-Nov-15 08:45 AM
I take my hat off for Oprah, she is a motivation to all women out there to give them hope.
Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!