eDiets Seeing Buying Interest On Weight Watchers Earnings (DIET, WTW)

Shares of small-cap company eDiets.com (NASDAQ: DIET) are seeing significant buying interest on the back of a blowout report from Weight Watchers International (NYSE: WTW) yesterday prior to the closing bell.

Weight Watchers reported EPS of $0.64 compared to analysts' consensus estimates of $0.56. Revenue was up 14.6% year over year. The company also guided EPS for 2011 in a range between $3.50 to $3.85. Analysts were projecting that WTW would earn $2.77 per share in fiscal 2011.

This forecast sent the stock up a staggering 46% to a record high. It also gave other diet related companies a huge surge in their share prices as well. One of those stocks, eDiets, is seeing some significant follow through on Friday. DIET shares, which have been beaten down relentlessly in recent months, have jumped more than 56% in the last two days, including 20% on Friday.

This stock is about as speculative as it gets, as the company only has a market cap of $36.75 million and has been losing a lot of money in recent years on declining revenue. If DIET can turnaround, however, it could provide shareholders at these levels some very nice returns.