Long Position on TVTY @ $37.90 on 6/9/2017 (Momentum)

Tivity Health, Inc. (TVTY) provides fitness and health improvement programs in the United States.

It offers SilverSneakers senior fitness program to the members of Medicare advantage, Medicare supplement, and group retiree plans; and Prime fitness, a fitness facility access program through commercial health plans, employers, and insurance exchanges.

The company also provides access to its WholeHealth Living network primarily to commercial health plans. Its WholeHealth Living network includes complementary, alternative, and physical medicine practitioners to serve individuals through health plans and employers who seek health services, such as physical therapy, occupational therapy, speech therapy, chiropractic care, acupuncture, and others. 

Following a strategic review, Tivity Health last year decided against an outright sale, instead opting to divest its population health unit to Sharecare Inc, a U.S. health and wellness online platform co-founded by TV personality Dr. Oz.

Shares have formed a bullish "cup and handle" and are in the process of moving higher. Yetseerday, reports surfaced that Private Equity firms are in talks to take company private. Higher share prices are expected for this stock. We think a take out price of $46-$48 per share would be logical.

52-Weeks Trading Range: $20.60 - $40.00

Entry Point: $37.90

Stop Loss: $36.00

Target Price: $41.69

Updates

7/19/2017 12:12:18 PM

TVTY closed at $40.

Position closed on 7/19/2017 at price of $40.00 with a 5.54% gain in 40 days.

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