Helix Investment Research's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.com/user/1007049/comments http://seekingalpha.com/article/1416341/comments?source=feed#comment-18606141 18606141
As for Ballmer's behavior, we agree that it has a key influence onf Microsoft's revenues and profits. And it is precisely that behavior that has caused Microsoft to leave billions on the table, as the company continued to pour money into online services and R&D, with little to show for either.]]> Wed, 08 May 2013 21:35:23 -0400
As for Ballmer's behavior, we agree that it has a key influence onf Microsoft's revenues and profits. And it is precisely that behavior that has caused Microsoft to leave billions on the table, as the company continued to pour money into online services and R&D, with little to show for either.]]> http://seekingalpha.com/article/1416341/comments?source=feed#comment-18605911 18605911 Wed, 08 May 2013 21:27:36 -0400 http://seekingalpha.com/article/1416341/comments?source=feed#comment-18605741 18605741 Wed, 08 May 2013 21:24:19 -0400 http://seekingalpha.com/article/1340011/comments?source=feed#comment-17607751 17607751 Sun, 14 Apr 2013 15:37:40 -0400 http://seekingalpha.com/article/1340011/comments?source=feed#comment-17607691 17607691 Sun, 14 Apr 2013 15:33:12 -0400 http://seekingalpha.com/article/1331511/comments?source=feed#comment-17447971 17447971 Wed, 10 Apr 2013 11:01:14 -0400 http://seekingalpha.com/article/1331511/comments?source=feed#comment-17447461 17447461 Wed, 10 Apr 2013 10:53:24 -0400 http://seekingalpha.com/article/1331511/comments?source=feed#comment-17442241 17442241 Wed, 10 Apr 2013 08:45:45 -0400 http://seekingalpha.com/article/1331511/comments?source=feed#comment-17441831 17441831 Wed, 10 Apr 2013 08:32:06 -0400 http://seekingalpha.com/article/1326121/comments?source=feed#comment-17359701 17359701 Mon, 08 Apr 2013 12:12:49 -0400 http://seekingalpha.com/article/1258551/comments?source=feed#comment-16051141 16051141 Fri, 08 Mar 2013 16:22:07 -0500 http://seekingalpha.com/article/1231251/comments?source=feed#comment-15646111 15646111 Thu, 28 Feb 2013 14:19:05 -0500 http://seekingalpha.com/article/1223661/comments?source=feed#comment-15645631 15645631 Thu, 28 Feb 2013 14:11:46 -0500 http://seekingalpha.com/article/1223661/comments?source=feed#comment-15570871 15570871 http://bit.ly/XCgqxW) Furthermore, CAJ has much more exposure to industrial markets, as well as personal and professional cameras. ]]> Wed, 27 Feb 2013 09:13:16 -0500 http://bit.ly/XCgqxW) Furthermore, CAJ has much more exposure to industrial markets, as well as personal and professional cameras. ]]> http://seekingalpha.com/article/1223661/comments?source=feed#comment-15570701 15570701 Wed, 27 Feb 2013 09:10:14 -0500 http://seekingalpha.com/article/1223661/comments?source=feed#comment-15570341 15570341 Wed, 27 Feb 2013 09:05:08 -0500 http://seekingalpha.com/article/1155871/comments?source=feed#comment-14621581 14621581
A local Kentucky station did a story (http://bit.ly/XLoASm) on Fortune Hi-Tech and noted that the local Better Business Bureau had received over 40 "recent complaints" regarding the company, but does not specify the definition of recent.]]> Tue, 05 Feb 2013 18:18:01 -0500
A local Kentucky station did a story (http://bit.ly/XLoASm) on Fortune Hi-Tech and noted that the local Better Business Bureau had received over 40 "recent complaints" regarding the company, but does not specify the definition of recent.]]> http://seekingalpha.com/article/1155871/comments?source=feed#comment-14620791 14620791
It should also be noted that FTC complaints can often be directed not at Herbalife, but at its distributors, who, while dependent on Herbalife for their own business, may or may not adhere to the company's standards at all times, and therefore give third parties reason to file a complaint with the FTC]]> Tue, 05 Feb 2013 18:05:01 -0500
It should also be noted that FTC complaints can often be directed not at Herbalife, but at its distributors, who, while dependent on Herbalife for their own business, may or may not adhere to the company's standards at all times, and therefore give third parties reason to file a complaint with the FTC]]> http://seekingalpha.com/article/1155871/comments?source=feed#comment-14608261 14608261 Tue, 05 Feb 2013 14:58:58 -0500 http://seekingalpha.com/article/1155871/comments?source=feed#comment-14598051 14598051
That being said, there are other factors to consider. On retention, HLF is steadily working to improve that, and recorded a retention rate of 52% for its sales leaders in Q3 2012 versus 48.9% in Q3 2011 (total active sales leaders rose by 22.1% on a global basis, including 15.2% growth in North America) (http://1.usa.gov/12qmZHl). As we've noted in prior articles on HLF, the SEC has already investigated the company twice, and both times closed its investigation without filing any complaints or charges against the company. As for the FTC, we have steadily maintained that it should not take 3 decades for the agency to uncover a pyramid scheme of this size. And if all it has is 192 complaints over 7 years, that is a solid track record for a company of HLF's size.

Regarding new markets, Ackman himself has argued that HLF is simply entering new markets to cover up the collapse of business in mature markets. But then how can US sales be growing at almost 16% last quarter (http://1.usa.gov/12qmZHl)? As we noted in a prior piece on HLF, sales have been growing in the US by an average of around 15% over the last 8 year. In addition, volume points in North America, HLF's oldest division, grew by 13.6% in Q3 2012. The company is entering new markets so that it can continue to grow its revenues and profits, not to cover up a collapse in the United States or other mature markets.

HLF's margins, which reflect the pricing of its goods and the cost of doing business, are not out of line with its MLM peers. In Q3, its operating margin was 15.82%. NuSkin's was 15.65%, Avon's was 4.16% (reflecting the internal issues Avon is facing), Usana's was 13.08%, and Tupperware's was 15.75% (they've already posted Q4 earnings). HLF's margins are not outrageously higher than those of its peers. As for the company's financials, the assessment of $2 billion in debt as manageable was provided by B. Riley & Co. The company's existing debt is not due until 2016, and as operating cash flow and EBITDA continue to grow, the company will have more room to take on new debt to fund any potential buybacks. ]]> Tue, 05 Feb 2013 12:41:52 -0500
That being said, there are other factors to consider. On retention, HLF is steadily working to improve that, and recorded a retention rate of 52% for its sales leaders in Q3 2012 versus 48.9% in Q3 2011 (total active sales leaders rose by 22.1% on a global basis, including 15.2% growth in North America) (http://1.usa.gov/12qmZHl). As we've noted in prior articles on HLF, the SEC has already investigated the company twice, and both times closed its investigation without filing any complaints or charges against the company. As for the FTC, we have steadily maintained that it should not take 3 decades for the agency to uncover a pyramid scheme of this size. And if all it has is 192 complaints over 7 years, that is a solid track record for a company of HLF's size.

Regarding new markets, Ackman himself has argued that HLF is simply entering new markets to cover up the collapse of business in mature markets. But then how can US sales be growing at almost 16% last quarter (http://1.usa.gov/12qmZHl)? As we noted in a prior piece on HLF, sales have been growing in the US by an average of around 15% over the last 8 year. In addition, volume points in North America, HLF's oldest division, grew by 13.6% in Q3 2012. The company is entering new markets so that it can continue to grow its revenues and profits, not to cover up a collapse in the United States or other mature markets.

HLF's margins, which reflect the pricing of its goods and the cost of doing business, are not out of line with its MLM peers. In Q3, its operating margin was 15.82%. NuSkin's was 15.65%, Avon's was 4.16% (reflecting the internal issues Avon is facing), Usana's was 13.08%, and Tupperware's was 15.75% (they've already posted Q4 earnings). HLF's margins are not outrageously higher than those of its peers. As for the company's financials, the assessment of $2 billion in debt as manageable was provided by B. Riley & Co. The company's existing debt is not due until 2016, and as operating cash flow and EBITDA continue to grow, the company will have more room to take on new debt to fund any potential buybacks. ]]> http://seekingalpha.com/article/1108461/comments?source=feed#comment-14467871 14467871 Fri, 01 Feb 2013 19:17:54 -0500 http://seekingalpha.com/article/1140621/comments?source=feed#comment-14319021 14319021 http://1.usa.gov/UAGLLy). Birkhold's compensation package also includes other arrangements, such as life insurance and reimbursement of relocation costs]]> Tue, 29 Jan 2013 16:10:27 -0500 http://1.usa.gov/UAGLLy). Birkhold's compensation package also includes other arrangements, such as life insurance and reimbursement of relocation costs]]> http://seekingalpha.com/article/1132401/comments?source=feed#comment-14174741 14174741 Fri, 25 Jan 2013 18:08:11 -0500 http://seekingalpha.com/article/1132401/comments?source=feed#comment-14159561 14159561 Fri, 25 Jan 2013 13:22:22 -0500 http://seekingalpha.com/article/1132401/comments?source=feed#comment-14157031 14157031 Fri, 25 Jan 2013 12:34:46 -0500 http://seekingalpha.com/article/1132401/comments?source=feed#comment-14155771 14155771 Fri, 25 Jan 2013 12:09:54 -0500 http://seekingalpha.com/article/1132401/comments?source=feed#comment-14132021 14132021 Thu, 24 Jan 2013 22:45:37 -0500 http://seekingalpha.com/article/1132401/comments?source=feed#comment-14130031 14130031 Thu, 24 Jan 2013 21:31:57 -0500 http://seekingalpha.com/article/1132401/comments?source=feed#comment-14124741 14124741 Thu, 24 Jan 2013 19:10:55 -0500 http://seekingalpha.com/article/1130071/comments?source=feed#comment-14106411 14106411 http://seekingalpha.co...). As for cash flow, payments for original content are not things that occur every single quarter, but are one-off cash costs that need to be paid when NFLX produces new episodes of a series. Not every quarter will feature such payments, and NFLX forecast that FCF will improve through the remainder of 2013.]]> Thu, 24 Jan 2013 13:02:45 -0500 http://seekingalpha.co...). As for cash flow, payments for original content are not things that occur every single quarter, but are one-off cash costs that need to be paid when NFLX produces new episodes of a series. Not every quarter will feature such payments, and NFLX forecast that FCF will improve through the remainder of 2013.]]>