They could save a lot more by cutting some unnecessary overhead, namely staff at corporate headquarters. The fact that they have hired superfluous staff including a corporate communications person a coo indicate that they do not have shareholders interests at heart. It should NOT be that hard to run a few motels especially when the day to day management is farmed out to management companies. Ridiculous and very happy I unloaded all common a long time ago. I keep thinking the assets are more valuable than indicated by stock price but with this bunch in charge shareholders will NEVER realize the hidden value in the motel assets.
what will you and your down line do, when the FTC requires that you actually make your money by directly selling to real consumers and not to people deluded into thinking they are entering a legitimate business opportunity? How much profit can you and yours make per can of F1 selling directly to real end users without the con job attached of a business op? You know that is what is coming!!
there would be no need to load new distributors up with lots of product. The new distributors could simply have a few samples and have the company directly ship the order to their "real retail customers" minimizing the need for inventory loading by distributors. this also would eliminate the problem of the distributor having to pay full sales tax on SRP when most of the product is purchased at less than SRP. But the game is not to sell to true retail but to get new distributors to load up on the product pursuing the misrepresented business opportunity. That is what the regulators will nail this money transfer scheme on. Bank on it.
is that the longer it stays in the light the more everyone knows how sick their model really is. The total lack of profitable retail sales for a direct selling company is pathetic and is what HLF and other MLM's like them keep trying to hide. They only survive by selling franchises to people that buy a lot of product because they have bought into a false dream of riches. That's why HLF needs constant rah rah meetings and inspirational songs like the one that preceeded the CC. LOL to keep the delusional as delusioned as long as possible as they continue to milk them out of what little money they have. Johnson does not care as long as he can stay at the top of CEO payscales. Top distributors collecting checks off the backs of failed new distributors dont care. Equity longs dont care as long as the stock keeps going up. Does the FTC care?
Are those new customers or new victims? but the main question remains. How well will you be able to sell your fake food without the benefit of tying sales to the false business opportunity?
Well, that is a good thing for you then. Because the FTC is going to shut down the tying of product sales to the false business opportunity. so, if you really are just selling the product and helping people then you are golden! Of course, there is not much profit in that. Nice that you are doing the charity work, but to keep the lights on better keep the day job.
Going to whole foods is absolutely the SMART thing to do. Eat REAL food. to buy this HLF over priced fake food is crazy, even if it was not a pyramid scheme. Which it is.
all those who are on the right side. The side of truth and justice. the side that knows HLF is a money transfer scheme and could see this inevitable decline into the abyss. Please, please do not keep rubbing it in the noses of the poor longs, who are suffering enough with their losses. Some actually have real loses from real stock they bought. Others simply have make believe losses. but even those with make believe loses, on make believe shares, are still deeply hurting from this latest market action. so, be kind! Try to understand that their brains are not that big. That greed probably afflicted them at an early age, and combined with ignorance and a disregard for the truth have created them the way they are. Be gentle.
well tupperware and pampered chef are two that come to mind that are operating legally. In other words, they actually sell most of their wares in direct sales to retail customers. yes they recruit new distributors but that is not the essence of their system. The essence of their system is to hold/host parties and sell to real retail customers. Other MLM's like HLF sell to DISTRIBUTORS MOSTLY. They trick new distributors into buying lots of product because they need to buy the product to pursue the false business opportunity. The evidence is ample and although companies like HLF try to obfuscate, confuse, muddy up the waters it will be easy to identify once the regulators really start digging. What this criminal probe is about is anyones guess. Most likely the highly illegal activity that was and maybe still is going on regarding mass recruitment and selling of leads. The problem HLF corporate has with this activity is 1. they probably knew about it and winked at it as it was a source of many new victims. 2. even if they can't pin that on corporate they still are going to see a lot of negative press and diminished recruiting because of the probes.
Well said. A comparison I would not have thought of but it is appropriate.
HLF products are in fact not equal to many others they are in fact INFERIOR. They use cheap protein including soy ingredients and the product is full of maltodextrin, which has a glycemic index much higher than PURE GLUCOSE. It is fake food and absolutely UNNECESSARY, as are most of it competitors for that matter. But the product is not even the worst thing about this company. That prize is taken by its money transfer scheme and terrible business opportunity. The main reason they sell so much product is because they first con people into becoming distributors and the new distributors buy the product to pursue the fake business opportunity. Then the new distributors, also pursuing the fake business opportunity, self consume, give away to family and friends and sell at well below their cost trying to get others into the scheme. 99.5% FAIL. but product has been sold and mostly consumed for the reasons stated above. And it goes on and on and on. Until the FTC puts a stop to it. Can't happen fast enough in my opinion. :)
on HLF basically talking about their great margins, return on equity, growth rates, etc. ignore one critical item. It is all built on the backs of failed distributors. The 100% returns on equity are impossible in a commodity nutrition company like HLF without the con job of bringing on new recruits who are willing to over pay for product to buy into the business opportunity. Almost all FAIL. Only those willing to deceive themselves and rob their fellow man make it in this money transfer scheme.
to this PYRAMID money transfer scheme. I am sure the United States senate, the Canadian officials and the Chinese are all conspiring against this great company to bring it down and prevent it from saving the world from Obesity. LOL
a good thorough investigation into this money transfer travesty known as HLF. About time some people of influence got involved and stopped the carnage. Thank you Senator! As I have said all along the real problem is the total lack of retail profits made by distributors. Now, apparently, the hispanic groups are going to meet with the CALIF AG and push that point. Calif ordered HLF to track retail sales several years back, and they have not done so. If HLF actually tracked retail sales and profits and reported the TRUTH to new distributors their whole rotten scheme would collapse and they know it. Point! Game! Match! LONGS are fools to ride this pig. 100% returns on equity DO NOT HAPPEN with legitimate companies selling commodity nutrtional products. THINK OR PERISH
Amazing news! What a comeback for this stellar company solving the obesity problem singlehandedly around the world! I knew they would redeem themselves.
What will the price per share hit right after Icahn announces his departure? Anyone?
BTW, I anticipate his departure to be announced in conjunction with a big buyback if they can swing it. They will say something like " To avoid market disruptions and price discovery interruptions, and to provide the best possible price to existing shareholders in our newly announced massive buyback, management has negotiated a deal with Mr. Carl Icahn to buy all his existing shares at one time for a price very close to market. We thank Mr. Icahn for his involvement and he has recused himself and his proxy's from the board and all future involvement."
first of all people owning this stock are losing their #$%$ this year, as predicted. Maybe even worse they tried to continue to get financial gain on the backs of millions of conned new distributors. I believe the word that defines that is: JUSTICE
The 2004 FTC Fraud Survey points out the extent of the overall problem of Of the ten most prevalent types
of consumer complaints received by the FTC, purchasing a membership in a pyramid schemes ranked seventh, with an estimated 2.55 million incidents and 1.55 million individual victims in the preceding year (the 95 percent interval ranged from .8 to 2.3 million individual victims, effecting between .4 percent and 1.1 percent of the US adult population). The amount lost per individual ranked pyramid schemes second among the ten fraud types. Most notably, pyramid scheme victims were the “least likely to complain,” despite recognizing that they had been victims of consumer fraud.
So, the newly conned distributors know they were defrauded but are probably too ashamed to report it.
you have to really like it at 60. That means most of you are going to absolutely LOVE IT when it goes back to 40. I am serious. A lot of the risk has been taken out with the latest 28% drop. But it still remains absolutely treacherous and dangerous to everyone. Especially longs but even shorts are now exposing themselves to some real risk. At 83 the upside was very very low. I never believed the billionaries club was going to take this private for anything much over that price. so, if earnings are good and no more nasty surprises I suppose we could see a decent pop here . But FTC or SEC investigations, more stuff from China, selling by one or more of the billionaries and down she goes. If Icahn unloads in Feb like i think he might it goes down a lot. I am out. flat. dont like the risk/reward at this point.
that time is on his side. The longer he keeps people looking into this totally corrupt business model the higher the likelihood of serious regulatory intervention. He knows it. HLF management knows it. LULAc knows it. And anyone with at least half a brain knows it. Management and longs can only HOPE that the spotlight dies down and they can return to the shadows and go back to conning millions of new distributors each year in relative anonymity.