They've been selling in China for 6 years. They changed their sales model to get that approval. They're building a manufacturing plant in Shanghai. I don't think China's government is now, after 6 years, going to say "no, you can't sell here...and take those manufacturing jobs with you."
Andrew Left seemed to be grasping at straws during that CNBC interview. The market seemed to agree as the stock price shot up at that point.
NUS will open down slightly and will be weak for about 15 minutes, which will encourage the shorts to double up. It will then advance in a series of sharp spikes, faltering mometarily to let more shorts into the trap. The Citronites were fighting back today and are now more deeply ensnared. Citron should have learned a lesson from Richard Nixon: Get a makeup artist before you go on TV. You may look like an old queen in real life, but the alternative is to look like Richard Nixon on TV.
Among the various things Schmidt is wrong about, we can include this exchange:
"Left: That new "great" product was refused admission this last spring here in the US per the FDA.
Schmidt: That's not true."
From Nuskin's own 10-q:
"The United States Food and Drug Administration (the "FDA") recently refused admission of shipments of our Galvanic Spa facial units because the FDA believes it may require clearance as a medical device." http://biz.yahoo.com/e/120807/nus10-q.html
I wouldn't take Schmidt's word as gold here ;) Besides, if Schmidt is right that the Chinese revenue was a 1-time event, then revenues are going to be rather disappointing in coming quarters since these "1-time" earnings are getting modeled into perpetuity by analysts. A lose lose for shareholders, either revenues stagnate or they get busted for being an MLM.
This has nothing to do with who's wrong or right.( Left's analysis was superficial. Saying that he has actual photos of NUS employees in China drawing pyramids is absurd. I can produce many photos of Harvard Business School Professors and noted nutritionists drawing pyramids. But forget that.) This has to do with The Scent of Blood. The wolf pack which follows Left may have been gored by the bulls here, and I don't think they're going to let them off easy.