Seeking Alpha

Dr. Kris'  Instablog

Dr. Kris
Send Message
Dr. Kris has two degrees from MIT because one just wasn't enough. Her life goal was to figure out the universe and having done that (at least to her satisfaction), she decided to tackle something even more difficult—the stock market. Applying the scientific method along with an insatiably... More
My company:
Stock Market Cook Book
My blog:
Stock Market Cook Book
  • Trade Of The Day: Herbalife ($HLF) 0 comments
    Feb 22, 2012 3:29 PM | about stocks: HLF

    Herbalife ($HLF) makes weight management and nutritional products and supplies them through its own network of personal distributors worldwide. Today the company reported record fourth quarter sales along with record earnings and free cash flow. FY12 revenues are expected to expand by 9-10% to $3.77B - $3.83B-that's B for billion, folks. The company is enjoying strong growth especially in the Asia and Central/South America regions with emerging market growth outpacing established markets'. The company boasts an exceptionally high 80% return on equity (ROE) and its P/E of 20 puts it inline with its industry peers. It pays a 1% dividend (which could stand to be raised). One possible negative is that the CEO has been selling a lot of shares in the past couple of months.

    The weekly chart of the stock (shown below) is compelling because it finally broke out of its 10 month rangebound pattern to hit a new all-time high of $66. Judging just from the technicals, the stock has room to run to well over $100. The stock has liquid options.

    HLF weekly chart

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Themes: Long plays Stocks: HLF
Back To Dr. Kris' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

  • Miners ready to take a break? Topping tail seen in $XME indicates buying pressure drying up.
    about 22 hours ago
  • RIP: Just found out that long-time voice of SNL, Don Pardo, passed away at 96. A truly distinctive voice.
    about 24 hours ago
  • A European vacay just got cheaper: USD $UUP popping above $21.80; Brit pound $FXB & euro $FXE breaking major support.
    about 24 hours ago
More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.