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Shares of Nu Skin (NUS +5.5%) are active today as Deutsche Bank's Bill Schmitz squares off on...

Shares of Nu Skin (NUS +5.5%) are active today as Deutsche Bank's Bill Schmitz squares off on CNBC with Citron's Andrew Left over the recent allegations by Citron that NUS is violating direct selling laws in China. Left accuses the company of operating a multi-level marketing pyramid scheme, saying he knows "for a fact" that the company is in the wrong. Deutsche's Schmitz fires back, saying NUS "wrote the law" in China, and those distributors receiving commissions are also salaried. (Video)
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Comments (4)
  • PassingShot
    , contributor
    Comments (5) | Send Message
    Schmitz made a good point when he said that NUS is still undervalued if all China's revenue is stripped away.
    9 Aug 2012, 03:19 PM Reply Like
  • AlSabawi
    , contributor
    Comments (29) | Send Message
    I have nothing against short selling bad companies, even bloated and overvalued companies that are not run well. But when short sellers go for tactics like Citron to scare off investors on questionable allegations based on 'moral' disagreement, especially when the company has been making the numbers and by many measures undervalued, I find it distasteful.
    9 Aug 2012, 03:32 PM Reply Like
  • jcoc4007
    , contributor
    Comments (3) | Send Message
    it is an absolutely truism that AlSabawi speaks when he addresses the "distasteful" nature of citron and the "tactics" used by such a brings to remembrance another truism - the instinct to survive is natural - yet - the things that people do to survive are very unnatural...!!!
    Deutsche Bank's Bill Schmitz (one of the most respected in the industry) has it right and has spent many hours doing real homework (as opposed to smoke and mirrors on citron's part) in order to speak intelligently regarding NUS...and if you really look at the numbers, NUS has strong value and proven growth -notwithstanding china
    although investing is a zero-sum game, in our economic environment, we should be looking for opportunities that create value for many - not just the naysayer or two...
    9 Aug 2012, 05:22 PM Reply Like
  • LeftHand
    , contributor
    Comments (2) | Send Message
    I have never conduct any short selling in the stock exchange but been marketing petrochemicals into China for over 30 years. The point I want to make about China is not on its law but on its law enforcement. Law enforcement in China is always full of grey areas and imagination. If the authority wants to make some money, they will find a "legal" way to tax Nu Skin, I believe, especially because Bill Schmitz said Nu Skin is "writing the law" in China. The more exposure of Nu Skin's way of doing business in China is broadcasted, the more likely China authority will closely examine the case. I think that is why Nu Skin does not want to be represented in this video. To sum up, there is certainly risk in a modified MLM model in China. Since the potential is tremendous, what is wrong about taking some risks ?
    10 Aug 2012, 01:01 AM Reply Like
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