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  • Usana May Reveal A Litany Of Problems
    Tue, Jul. 29 USNA Comment!

    Summary

    • Possible further weakening of North American sales, which distributor growth has essentially flatlined.
    • China and Hong Kong results will determine Usana's fate, where the former have drastically offset the latter. China's media have also publicly criticized Usana's questionable practices.
    • Q2 results may reveal the intent of their $200 MM buyback program that was authorized in Q1, while insiders have continued to sell their stock and exercise their options.
  • Usana Sugarcoats Its Weak Results And Downplays A Huge Buyback Authorization
       • Wed, May. 21 HLF, USNA 9 Comments

    Summary

    • Q1 results reveal flat distributors growth over Q4, the state of associate confidence and heightened regulatory scrutiny.
    • Lower guidance, weaker margins coupled with higher diluted shares does not bode well for shareholder value.
    • Usana authorized share repurchases from $13M to a whopping $200M (about 20% of market cap.) Could the Chairman be preparing a selloff or an exit with his 47.3% ownership?
  • How Usana Compares With Herbalife's Pyramid Scheme Allegations
       • Tue, Apr. 15 HLF, USNA 33 Comments

    Summary

    • Usana operates similarly to Herbalife where commodity-like products are sold at premiums through a heavy emphasis on recruiting rather than traditional means of advertising and R&D.
    • Confirmation that the FTC (and now allegedly the DOJ/FBI) has launched an investigation on Herbalife overshadows Usana’s seemingly strong financials.
    • China relented to direct selling companies in 2001 under the pressure of the US. New rules by the FTC could would spillover to China.
    • Hong Kong sales are suspiciously declining at an alarming rate, while offset by growth in China where MLMs are banned.
    • Evidence that supplements have any long-term benefits for preventing cancer and cardiovascular disease (CVD) remains inconclusive by the US Preventative Service Task Force (USPSTF).
  • Valuation Is Why Dell Is Worth Considering
    Jul. 2, 2013 DELL 13 Comments
  • Why These Fundamental ETFs Should Make Up Your Core Portfolio
    Feb. 26, 2013 PRF, IWB 6 Comments
  • Coke Is Close To Its (Conservative) Intrinsic Value
    Jun. 12, 2012 KO 6 Comments
  • DeVry University Receives A Failing Grade For Investment Value
    Jun. 11, 2012 DV 4 Comments