what are they doing? you always see stocks up big w/o knowing a major upgrade took place. The message board is alwys asking "News?"
Who do you believe ? Piper or message board?
Do you think Piper doesn't know?
You can't make this stuff up
Funny thing is, Herbalife tells us that it has millions and milions of customers who never sign-up to become distributors at all. Weird, don't you think?
How can it work both ways? Herbalife argued in the Bostick case that the State of California says its okay if distributors are considered "ultimate users". The Judge disagreed. So, now Herbalife finds itself in a bit of a pickle.
If the 73% of the "members" of the pyramid scheme don't count as "ultimate users" presumably the company will now have to produce evidence that the millions of people who are not signing-up to receive a 25% discount actually exist. What are the odds of that?
If the company's very best recruiters can only find an average of 5 super-charged, hopped-up customers so fired-up that they want to sign-up as distributors to get a discount, how many external customers do you think they are able to recruit?
Would you expect the number to be higher or lower? What does common sense tell you?
Let's be clear about the mechanics of Herbalife's existing compensation scheme. The tiered discounts/preferential pricing given to SUPERVISORS clearly incents new recruits to inventory load. It is this inventory loading that is likely the driver of purchases, commissions, revenues, cashflows, and ultimately churn.
As for all the people out there trying to get skinny? Unlikely they exist at all.
This week the California courts and the SEC delivered warning shots to long investors. If you are counting on the government accepting the idea that junior distributors are just customers think again.
If you are counting on the existence of millions of legitimate "retail customers" rethink that position too. For Herbalife to escape pyramid scheme prosecution they are going to have to pull two rabbits out of the hat.
Anyone believe that? If so, I have some Sino forest stock for free
What else do they have to do
Now who looks correct?
Imagine if all companies wait 6 months to get paid.
Something is wrong