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Herbalife Ltd. Message Board

  • truth.seeker8484 truth.seeker8484 Dec 25, 2012 4:30 PM Flag

    The Reality of the Situation

    It seems that there is a lot of non-sense chatter going on about what Hebalife really is. Interestingly enough, this chatter is coming from people who don't understand Herbalife and may just be here for a quick buck up or down. I am a former Herbalife distributor and was very serious with the company for a few years moving up the ranks. I did end up losing money in the end but that was not because of stored product that was because of the expenses of marketing. The reality is that I am not a fan of MLM and would certainly not recommend my friends family get involved with MLM. That being said, they are legal and Herbalife has made it successful. The fact is that people DO consume product, everybody does in fact from the top down and they consume is religiously. Yes, there are numerous distributors that become distributors to solely consume product and I see the worst case scenerio happening is that Herbalife changes these people to so called "preferred customers" instead to clear the misunderstanding. As long as MLM's remain legal in the U.S. Herbalife will be absolutely fine and will continue on. I am just upset about this short term fluctuation but have absolutely no doubt that Herbalife will come out on top in the end as it always has.

    Sentiment: Strong Buy

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    • The reality is HLF is not a $70 stock, nor do stocks gap $40+ lol and this will soon be a pennystock. Jim Cramer has HLF as one of the top 3 stocks to stay away from and HLF has been on a freefall since this summer. There is not a stock or chart out there that comes back from these type of falls. Longs will not win on this one and funds and investors have been exiting. There is a very good chance they will get an FTC ruling against them, but either way this black cloud is discouraging any real buying. We won't even see a decent bounce until it can close above the previous day's high, but we have been closing -5%+ down day. Investors, buyer beware, fact.

      Sentiment: Strong Sell

    • Riddle me this, Batman. We all know the economy has not been in good shape in the last few years. How do you explain Herbal life revenue jumped by 50% in 2 years (from $2.3B to $3.4B) and profit also by 50% (from $1.8B to $2.7B), all the while spending $0 in R&D. The gross profit margin is just crazy... A whopping 80%. That's even higher than software and/or other drug companies. All the while spending $0 on R&D. It's all in the income statement. How's that possible?

      • 2 Replies to android_shopper
      • Actually I can tell you that revenue jumped in the past couple years because that it is about the time that the "daily consumption model" became widespread. Whats hilarious is that Ackman posted pics of low end nutrition clubs.. that is exceptionally deceiving because I have been to many high end ones that look great and are in the likes of orange county.

      • do a web search on Herbalife daily consumption model and read the articles. Funny, Ackman chose to not even cover the daily consumption market in the presentation except bashing the appearances of a few nutrion clubs. The daily consumption model which is running rapid in emerging markets and in American Latino community is the source of the growth you question. And it is the most non ponzi like side of the business. Because its actually people buying for lunch and drinking the shake. Ackman chose to not discuss in presentation. Why?

    • They understand. They are just trying to make money on their short positions. This type of marketing has been around for many years. Likely 30 percent of Americans have been involved with this type of marketing or company at some point in their lives. Most of the presentation falls outside the scope of the allegations. Most of the presentation was supporting a short seller agenda. This was not a courtroom presentation. Some people are confused here, this was from someone or group who is biased towards a position (to gain from short selling). If he cared anything about shareholders or small investors, he would have let the SEC investigate it first. Its investigations are confidential. He and his buddies also would not have borrowed any shares from people's accounts or bought large amounts of put options. He is not acting in good faith and he has unclean hands.

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