BOUGHT at $13.50     SOLD at $19.45

    On October 28th Nautilus Group Inc, a provider of fitness equipment that sells under the names of Nautilus, Schwin, Bowflex and Stairmaster, reported 3rd quarter 2003 revenue of $116 million which was down from the $153 million reported in the 3rd quarter of 2002. Net income was $6.6 million or 20 cents per share. Though revenue was down year over year it was up 16% sequentially. It appears as if revenue levels have stabilized after dropping off earlier in the year. Nautilus initiated cost cutting measures during the quarter including head count reductions. The company is also working to broaden it's retail distribution channels. In September 2003 they announced that their products will be offered through Amazon.com. Nautilus expects 4th quarter revenue of $104-$124 million with earnings of 24-34 cents a share. For the full year 2003 the company expects revenue of $450-$470 million and earnings of $1.00-$1.10. With a current market cap of $464 million the stock trades at 1x sales. Nautilus has $63.8 million in cash and cash equivalents or $1.96 per share. Book value is $5.25 per share and the company carries no debt. 

     After the October 28th earnings report the stock gapped higher and clearly broke it's 18 month downtrend line. Since then the stock has pulled back to it's approximate breakout point. After pulling back the stock has traded between $13.35 and $14.48 over the last 2 weeks. Buy on a break above $14.50. Make sure that the stock is trading above $14.50 and it has traded at least 75,000 shares before you buy. This way the buy price won't be triggered by a few small trades early in the morning. If it doesn't break $14.50 then buy if it pulls back to the lower end of the recent trading range at around $13.50.

$13.50 BUY PRICE TRIGGERED 12/04/03.

11/04/04 - SOLD AT $19.45 FOR A GAIN OF 44%.