NHTC: Game Over! News Media Report Company Being Investigated By Chinese Authorities. See You At $2 USD?

Jan. 07, 2016 9:56 AM ETNHTC11 Comments
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"Risk comes from not knowing what you're doing" Warren Buffett Twitter: @unemon1 Scribd: http://www.scribd.com/Unemon Webpage: unemon.com

{Here you can find my personal interpretation of a recent Investigative Report released in China ... about a Company I have been skeptic of for a long time. Do not trust me. Do your Homework. Hire a translator. and Act consequently}

Natural Health Trends Corp. (SYMBOL: NHTC), a Delaware corporation, is an international direct-selling and e-commerce company. You can find More information about the company in its lates 10-Q filing. If I would to describe the Business with my own words ... It seems just a MLM Company to me!

1. 90%++ Of Revenue Generated in China* (No other Driver of Growth)

*Revenue Generated in is De Facto Revenue Generated in China (See last 10-Q Report at Page 13)

2. Today A Newspaper Investigative Report Published in China reported that the Authorities are investigating the Company in China*.



*Do not Trust my Translation ... hire a professional Trasnlator ... Do your own DD ... and then ... Act consequentely.

When about to publish my Blog, I did find another / maybe better version of the Article. Here it is


3. As per 10-Q (page 13) NHTC does not have yet a License in China. In my opinion, now that they are being investigated ... they will never get one.

We have previously sought to obtain a direct selling license, and in August 2015 initiated the process for submitting a new preliminary application for a direct selling license in China. If we are able to obtain a direct selling license in China, we believe that the incentives inherent in the direct selling model in China would incrementally benefit our existing business.

Common sense would tell NHTC to say bye bye to the hope of getting a direct selling license in China!!

4. NHTC thinks (10-Q page 13) that Their HK base Model to sell in China operates in compliance with current laws and regulations in China.

We believe that our China e-commerce retail platform operates in compliance with current laws and regulations in China. Further, after consulting with outside professionals, we also believe that our e-commerce direct selling model in Hong Kong does not violate any applicable laws in China, even though it is used for the internet purchase of our products by members in China. There can be no assurance, however, that the Chinese authorities will agree with our interpretations of existing laws and regulations or that China will not adopt new laws or regulations.

So, Why is it now being Investigated? This spells trubles ... and could mean an Implision of the business Model!

5. NHTC Business Model Already Imploded in the Past when in 2004 the Pyramid Scheme was exposed in China.

Also during the last Episode ... the Revenue Deiver was Revenue generated in though Hong Kong. See following Picture.

6. BTW, Management/Insiders are savy People ... They Started to Jump the Sinking Boat long time ago! Why should you stay onboard? You a TITANIC CAPITAN wannabe?

And .. btw ... I guess most of you did not know is that it was Mr. Broady that filed to sell as much at 800k shares in MAY (not all included in the Chart Above)

WHY SHOULD YOU STAY ON A SINKING BOAT? I am not ... Actually I am gonna to speculate it is going to sink ... hi hi hi ....

Disclosure: I am/we are short NHTC.

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