A stronger take-out story: We do note however, that as a prime take-out
candidate in a consolidating industry, BBAR's agreement with Jenny Craig (a
20 year agreement with extension options for an additional 30 years) makes it
that much more attractive. Not only does it provide the acquiring company
with two strong brands, but also it ensures a presence in two strong
categories -- natural nutrition and weight loss. Moreover, a larger company
could easily support and more easily absorb the marketing/slotting fee
investment that is creating BBAR's unfavorable earnings profile in the near
and mid-term. Along these lines, we feel BBAR's long-term value has been
fortified in the eyes of many potential suitors.