Nu Skin accelerates dive after reopening


Reopened for trade following its acknowledgement of a Chinese investigation, Nu Skin (NUS -35.7%) tumbles even further.

"Not all MLM are alike," says Citron Research, defending Herbalife (HLF -13.1%). "Citron has NO evidence (their emphasis) that HLF is operating a pyramid in China."

USANA (USNA -16%)

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Comments (9)
  • minecanary
    , contributor
    Comments (1234) | Send Message
     
    They better get Carl Ho Li to announce he's started a position
    16 Jan 2014, 02:22 PM Reply Like
  • WhiteTiger575
    , contributor
    Comments (215) | Send Message
     
    What an over reaction.
    16 Jan 2014, 05:25 PM Reply Like
  • CrimeBustersNow
    , contributor
    Comments (2546) | Send Message
     
    "What an over reaction???
    ~~~~~
    What an under assessment of a pyramid scheme!!!

     

    David Thornton
    Concerned Citizen: No position in any stock: Simply doing what WE can to expose fraud
    17 Jan 2014, 05:48 AM Reply Like
  • WhiteTiger575
    , contributor
    Comments (215) | Send Message
     
    100 per cent hind sight is not "doing what WE can to expose fraud."

     

    NUS is not conducting fraudulent practices. Direct distribution of products often involves compensation in line with responsibilities.

     

    Attorneys (and sometimes analysts) can be like vultures circling around at the smell of blood like siblings circling around the corpse of their rich relative. It is shameful really.

     

    Thank you "Poortorich" below for your excellent explanation.
    17 Jan 2014, 01:58 PM Reply Like
  • User 20735771
    , contributor
    Comment (1) | Send Message
     
    Don't panic. Nu Skin has great products. There are plenty markets outside of China.
    16 Jan 2014, 08:33 PM Reply Like
  • Weighing Machine
    , contributor
    Comments (877) | Send Message
     
    panic - citron called it and now it's happening. history is not on the side of long investors in NUS
    16 Jan 2014, 09:03 PM Reply Like
  • poortorich
    , contributor
    Comments (3458) | Send Message
     
    Over reaction indeed. Some things to consider

     

    1) In 1998, China banned all direct selling. With no clear regulations, the government could not manage the industry. Amyway was already in China by this time.
    2) From 1998 to 2005, Amway CONTINUED TO EXIST by revising its sales and marketing plans FOUR times from 1998-2005 as Chinese regulations changed. In other words, it did not collapse. It adapted its business model
    3)In 2005, after heavy lobbying by Amway and other American companies and to fulfill WTO commitment, China once again allowed direct selling. However, this time, the Chinese government was better prepared with more clear rules that defined a legitimate direct selling company. Unlike America, where the lines are blurred, in China, standards are more clearly defined. Since then direct selling has thrived in China.
    4) The Chinese government has and continues to shut down illegal pyramid schemes. As an example, in 2007, during a one month period, the Chinese authorities uncovered SIX HUNDRED pyramid schemes and made arrests in 14 provinces and cities. It is interesting to note, however, that the major direct selling companies, like AMWAY, HLF, NUS, Mary Kay etc have thrived despite the continued close scrutiny of the government. What does this imply? Perhaps, these companies really do adhere to Chinese government regulations.
    5) In the case of NUS, it has been in operation in China for 11 years now. It was recently granted access to more provinces. Could it be that NUS and many of its members are indeed in compliance with the rules and what you have here is a situation where a few rogue distributors are spoiling it for everyone else? If that were the case, would the Chinese government completely shut down NUS? I can't imagine a government that cracked down on 600 pyramids in one month would fall asleep at the wheel and fail to monitor multibillion dollar company like NUS. Or would some fines and perhaps modifications in business practice be in order. One must remember that if China wants to be a major economic player, it needs to behave like a WTO member. Direct selling is increasing in China and is already a big part of society.
    17 Jan 2014, 01:33 AM Reply Like
  • CrimeBustersNow
    , contributor
    Comments (2546) | Send Message
     
    @“poortorich” Enlightens us with the suggestion of applying this bit of blackmail

     

    “…if China wants to be a major economic player, it needs to behave like a WTO member. Direct selling is increasing in China and is already a big part of society.”…
    ~~~~~~~~~
    You mean behave like this group of international, white-collar money-laundering, crooks, gangsters and thieves???

     

    Perhaps your right. Perhaps China WILL have to adopt the corruption of the West; the illegal pyramid/Ponzi schemes; the “smoke and mirrors” of the celebrity physician, Dr.Oz. and his "Medicine Show" and the likes.

     

    I suppose we can chock it up to “What’s new in China?

     

    David Thornton
    Concerned Citizen: No position in any stock: Simply doing what WE can to expose fraud.
    19 Jan 2014, 02:22 AM Reply Like
  • WhiteTiger575
    , contributor
    Comments (215) | Send Message
     
    Whining and complaining is not the same as concerned.
    21 Jan 2014, 04:50 PM Reply Like
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