Leaked Internal Herbalife Survey Gives FTC More 'Actionable' Results
- Herbalife sells a business opportunity that is "the solution for these tough economic times".
- Statistical evidence shows that most participants fail.
- Internal evidence reveals that the company knows these failure rates.
- Still, CEO Michael Johnson tells recruits "there's never been a better time to join Herbalife".
- Internal documents confirm yet again that Herbalife is committing fraud.
Herbalife's Unusual Foreign Currency Problem, Explained And Analyzed
- Herbalife's currency exposures are larger than one might expect.
- Currency devaluations against the dollar, because of their timing, could not have been included in management's Q4'14 and FY'15 guidance.
- An analysis of five years' worth of data on the company's currency headwinds suggests management's Q4'14 guidance is far too optimistic.
- Even a conservative assumption of constant spot rates against the dollar in 2015 will have a material impact on FY'15 results.
Analysis Of IRS Statistics Suggests A 98.94% Financial Failure Rate For Herbalife Sales Leaders
- While Herbalife does not disclose the business expenses incurred by its distributors, IRS statistics provide a reasonable basis for estimating these expenses.
- Analysis of the IRS statistics and Herbalife’s “Statement of Average Gross Compensation” suggests a financial failure rate of 98.94% for distributors Herbalife categorizes as “Leaders”.
- This finding is consistent with other estimates of financial failure rates among Herbalife distributors using different methodologies.
- The pending FTC and other governmental investigations of Herbalife should not be limited to whether Herbalife constitutes a pyramid scheme, but also whether Herbalife is deceptively representing its business opportunity.
Media Attention Moving From P-Word To C-Word For Multi-Level Marketing Stocks
- The international radio documentary, "This American Life", recently examined a popular and publicly-traded MLM, Wake Up Now, and raised the question of cult practices. The show will reverberate upon Herbalife.
- The charge of cultism has haunted MLM and Herbalife, which resembles Wake Up Now. Historically, MLM was connected to "mind-control" programs linked to the pyramid scheme structure.
- Few analysts have investigated cultism as a marketing factor, yet conventional approaches of finance and law fall short of explaining Herbalife and other MLMs' growth and power.
- The radio show introduced the concept, "economic cults", citing cult characteristics to explain self-destructive behavior of MLM recruits. Pyramid schemes facilitate economic cults, allowing them to promise heaven on earth.
- There are ten basic traits that identify cults, including "economic cults." Multi-level marketing exhibits all ten.
Apparent Proof Of A Stunning Slowdown In Herbalife Purchasing Traffic
- MyHerbalife.com is a key portal for North American (primarily US) distributors to obtain product from the company.
- Though not the only source to purchase from, one can assume looking at its traffic helps describe the larger picture of how much product is being ordered from the company.
- Traffic for this site, as monitored by Alexa and Compete, appears to be falling off a cliff. Since May 2012, the site's Alexa rank has gone from 6,000+ to 16,000+.
- This could be a key indicator that Q4 sales may disappoint.
- Due to the strong dollar, Herbalife faces serious currency headwinds from Russia, Brazil, Venezuela and other emerging markets - these could shape the international Q4 picture.
2015 Herbalife Forecast: Not Everyone's Gonna Make It To The Pope's Seat
- Herbalife tells investors it's a Nutrition Company.
- Why don't its sales results match with competitors?
- Why doesn't Herbalife show evidence of seasonality?
15 Insane (But True) Reasons The Herbalife Fraud Should Be Shut Down Today
- These are 15 reasons that the Herbalife fraud should have already been stopped - if not shut down immediately, placed under injunction until FTC investigation concludes.
- Herbalife insider caught on video calling the company "an eventual deception" and "inauthentic".
- First hand primary source evidence points to Herbalife being the largest fraud since Madoff/Enron.
- Questionable death in Mexico surrounded by 7-8 year old questions about the lead content in Herbalife's product.
- Herbalife Board Member Pedro Cardoso is wanted for fraud in Brazil. Enough is enough - shut it down.
- Investment decisions on Herbalife and other MLM companies cannot be based on reliable data.
- What passes for industry data on direct selling is demonstrably false, based on its own inconsistency and mathematical impossibility.
- Data published by the "Direct Selling Industry" contradicts itself, and completely contradicts Herbalife's narrative of how "direct selling" operates.
- The question of "pyramid scheme" regarding direct selling requires simple and direct investigation of company revenue and distributor income sources. Industry data should be assiduously avoided.
- Pattern of loss claims demonstrates Herbalife is a net detractor from GNP.
- Patterns of loss claims demonstrates potential tax-evasion issues.
- Rational valuation of HLF shares is nearly impossible based on hard data and imponderables.
- Herbalife is insufficiently reflected in Icahn Enterprises (IEP).
- The action now shifts to the rest of the MLM industry, and the investors that have an interest in them.
Why Bill Ackman Will Be Proven Right On Herbalife Soon
- Herbalife is running out of time.
- Herbalife is running out of money.
- Herbalife is running out of excuses.
An Exclusive Interview With Pershing Square's Bill Ackman
- Pershing Square's investment performance has been exceptional year to date.
- Bill Ackman continues to seek opportunities for his firm and his investors.
- As a fellow Herbalife short, Mr. Ackman agreed to join me for a conversation.
How Will Herbalife Survive The Latest Evidence That It Is A Pyramid Scheme?
- Bill Ackman released a video showing a top Herbalife distributor admit the company is built on deceit.
- It is important to note this video was not taken during a random meeting, it was filmed during a meeting with TOP Herbalife executives in attendance!
- The company's response to the video is that the clips were taken out of context.
- I cannot think of a context where these admissions could be taken as anything other than prove of a pyramid scheme built on deceit.
- In November 2014 the Direct Selling Association published a comprehensive industry survey.
- The results are materially different than studies published by Herbalife.
- Each statistic contradicts the statistics presented by Herbalife.
- The capital structure was weakened with an increase in long-term debt, which went from $431 million in December 2012 to $1.728 billion in September 2014.
- Long-term debt per share expanded to $18.82 from $4.18.
- $3.1 billion was spent buying back stock since 2007. That is 80% of today's market value.
Dear Kamala Harris: If It Quacks Like A Duck, It's A Duck
- Pershing Square offers investors more damning evidence of Herbalife quackery today.
- Recorded testimonials offer direct evidence that Herbalife is violating the 1986 California Injunction.
- When will either Pamela Jones Harbour or California AG Kamala Harris intervene?
- Pedro Cardoso exposed as one of Herbalife's Top Perpetrators.
Sat, Jan. 24, 2:30 PM
- PE giant TPG Capital "seriously considered" buying Herbalife (NYSE:HLF) last year. It also took a look at Nu Skin (NYSE:NUS).
- It is not clear why TPG’s interest in Herbalife and Nu Skin ended without any investment.
- On Thursday, Avon (NYSE:AVP) jumped 15% on reports TPG was interested in acquiring it, only to drop 7.9% on Friday after Wells Fargo told clients in a note it was skeptical of the prospect.
- If TPG does not buy Avon, it “might take a new look” at Herbalife, with its stock falling in half over the last 12 months, a source says.
- Source: NY Post
Sep. 4, 2013, 2:16 AM
- Herbalife (HLF) looks to have gained another ally in its battle against accusations that it's a pyramid scheme, with William Stiritz, the CEO of Raisin Bran maker Post Holdings (POST), acquiring a 5.2% stake in the the company.
- Stiritz joins Carl Icahn, George Soros and Perry Capital in buying into Herbalife and taking the opposite position to Bill Ackman's big short.
Apr. 11, 2013, 2:37 PMHerbalife (HLF +3.8%) pops on reports from CNBC that the criminal complaint filed against the charged former KPMG auditor Scott London inferred the company was going to go private. However, the SEC complaint doesn't appears to discuss a takeover of HLF, but instead refers to London passing information to Shaw on mergers involving RSC Holdings and United Rentals, and Pacific Capital with Union Bank. | Comment!
Jan. 10, 2013, 5:30 AMCarl Icahn has reportedly entered the battle of the investor titans that's raging over Herbalife (HLF) by acquiring a stake in the supplements company. Icahn has joined Dan Loeb on the long side, thereby going up against Bill Ackman on the short. "It's going to be an Ackman sandwich," a hedge fund manager declared.
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