" HLF sells all of its product to distributors, who in turn resell it to customers." There is ABSOLUTELY no proof they resell to customers. they self consume, give it away and if they do sell to non distributor customers it is quite often at a huge DISCOUNT even to their own cost. See how simple the model is!! They DO all these things to try to build a down line to gain perpetual income. It does not work for 99.9% of them but they keep trying because people like you keep enticing them in with false promises of riches and perpetual income.
Ackman could have made a mistake on HLF. He is not wrong about the merits of the company imo but he may have made mistakes in execution. What Ackman thinks is NOT the relevant point however. The company is GARBAGE no matter what ackman or anyone else thinks.
Both VRX and HLF are garbage stocks. VRX may be the worse of the two but HLF and other MLM's are worthless business models that prey on ignorant and desperate. HLF sells overpriced sugar shakes primarily TO its delusional distributors. VRX buys pharma formulas and jacks up the price. VRX also put a plan in place to pay the high co pays of patient scamming the system s to really milk the insurance companies paying the bills. It was a total fraud. Fortunately, it appears the end game is in sight for both of these abominations of companies. Can not happen soon enough for me.
over 30 billion in debt. their roll up model of buying pharma companies using huge debt and jacking up prices with no additional cost of research is a total bust especially in the current political environment. How will they service all that debt? How will HLF grow once China drops? new recruits harder and harder to come by as people are wising up to these scams. Need about 2 million a year to stay flat.
my opinion and fact are basically so close they are equivalents. So your comment is a distinction without a difference.
and make no mistake VRX is a piece of garbage in my book. I shorted from 232 down to 104 and covered. Too soon obviously but why get greedy! I also rode VRX long from about 8 to 60 a few years back to about 60. But Ackman making huge mistakes on VRX does NOT change the facts that HLF is an abomination of a company that sells primarily sugar shakes TO gullible new distributors chasing an impossible dream that will NEVER come true. And the air is slowly being let out of the HLF balloon just like the rest of the mature MLM's. Just take some time. Longs have a little bit of hope that billy boy may have to cover and experience a short term benefit from that. Other than that long drag down unless the FTC acts appropriately in which case fast ride down to disaster.
They are NOT required to SELL product their role is to BUY product. This is not complicated. Sell them on the dream of perpetual income, get them hooked on the value of the sugar shakes, get them to buy buy buy and then give away, self consume, sell a little at a significant discount to what they bought at. Wash, rinse repeat. Get most to keep doing this long enough until more recruits come in to take their place buying product pursuing an unobtainable dream.
flutie says "The bottom line is that this data has no bearing on past earnings or future guidance. That is the Bottom line" Can you really be that INCREDIBLY STUPID? Sorry, that was rhetorical question for anyone who has ever read your posts. You are actually saying that the RECRUITMENT of new distributors has NO BEARING on future results. LOL
I think i have figured out what went wrong. You see, they use to call them distributors then they changed the name to members to further obfuscate and confuse everyone. It worked so well they even totally confused the people in the stats department so they double counted. simple mistake. The only thing worse than a fraud is an incompetent FRAUD which is what HLF is. LOL
TO gullible distributors apparently is still working for this abomination. LOL Recruiting still a problem. Balance sheet has improved. Better hope China hangs on as that is only growth area. Still have no short position in this snake oil enterprise as FTC may wimp out once again and allow this totally worthless enterprise to continue. pathetic. Bill may have to capitulate eventually. Made great $ on VRX short but no position there either. Lots of other great opportunities.