Since 2002, I have followed Blyth Inc. (NYSE:BTH), which was primarily a direct seller of scented candles, due to an acquisition hypothesis that Blyth would complement Berkshire Hathaway's Pampered Chef, a leading MLM (multi-level marketing) company that sells kitchenware. Although my hypothesis was wrong I never bought the stock because of low growth, increased competition from Yankee Candle, Big Box, and online retailers, and was concerned margins and sales would drop.
The MLM business is highly cyclical, in fact, if you were to look at the popularity of PartyLite (Blyth's scented candle business) over the past decade, you can see the rise and fall every five or so years. Please click HERE to view.
Blyth has been in
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