Herbalife Ltd. (NYSE:HLF)

CAPS Rating: 1 out of 5

A global network marketing company that sells weight management, nutritional supplement and personal care products.

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4
Player Avatar getrichdietrying (82.57) Submitted: 12/31/2012 8:35:57 PM : Underperform Start Price: $26.57 HLF Score: -27.95

I just checked out their website and there is no product I am interested in or have ever seen in any single retail store across the USA. So how are they making so much money is truly a real serious question that need an answer.

"A formal SEC investigation appears likely sometime in 2013."

http://seekingalpha.com/article/1086621-herbalife-value-pick-or-short-candidate

"At this point in time, heart-breaking testimonials from former Herbalife distributors are popping up all over the internet as a warning to would be distributors. One tasty excerpt from this collection that truly sums up Herbalife's business model is the following: "Multiply the value of all of your assets by the value of all of your liabilities. Now double that figure. That is how much money you will owe when you file bankruptcy because you were a Herbalife distributor that swindled people into joining that organization." This was a response to the question, "How much money do I need to give someone to sell Herbalife?".

heart-breaking testimonials...
http://factsaboutherbalife.com/wp-content/uploads/2012/12/Negative-Testimonials.pdf

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Member Avatar getrichdietrying (82.57) Submitted: 1/9/2013 12:21:38 PM
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Just placed real short positions at 40

Member Avatar getrichdietrying (82.57) Submitted: 1/9/2013 11:19:10 PM
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Here is the argument that HLF is not an pyramid but a MLM from nothwestern,edu of course it was paid for by Herbalife so you be the judge. Most likely it will be the argument used tomorrow. I have no position as there were no shares available to short.

http://kellogg.northwestern.edu/faculty/coughlan/htm/PersonalPage_Files/Papers/Assessing%20an%20MLM%20Business%20HLF%20as%20a%20Legit%20MLM%207-30-2012%20FINAL.pdf

Member Avatar LooeeGoldbug (48.74) Submitted: 1/11/2013 1:54:56 PM
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A lot of very smart people are saying it isn't a pyramid scheme. Ackman made the case that it is a pyramid scheme as he shorted the stock. Seems to me like he made the claim to make money, not to "help the victims" like he claims.

Member Avatar getrichdietrying (82.57) Submitted: 1/30/2013 5:04:41 PM
Recs: 1

Sorry about so many postings but fool does not allow edit of comments. Here is a great source for those who are thinking in investing in this company and for those wanting to start a home business. Save yourself the heartache along with an empty pocket.

http://www.cockeyed.com/workfromhome/ud_saturation1.html

"Historically, it has been very, very hard to recruit successful herbalife distributors to work beneath you. How do I know that? Well, it is easy, if you understand exponential growth".

Member Avatar legalwordwarrior (< 20) Submitted: 2/18/2013 10:43:25 AM
Recs: 1

My mom has been an Herbalife Distributor for over 30 years. She supported Mark Hughes when he was just getting started and Tish Rochine(sp) as she moved up the levels. Even after Mark died from a drug overdose, Mom hasn't wavered in her support for the company. She swears by the products and I shudder knowing how much money she sunk into this company that could have been put into some nice safe assets for her retirement.

Member Avatar thedubliner (38.61) Submitted: 5/21/2013 12:03:19 AM
Recs: 0

I am an Herbalife distributor myself and I have reached the TAB team (managerial level) already 3 years ago. Because the multilevel distribution model is so misunderstood (as I can see also here on fool.com), HLF will always be prey of attacks of short sellers try to make millions (it happened already 4 times since its IPO in december 2004).

Hence HLF, as a stock, has a high volatility so you should keep that in mind as you build your stock portfolio. Because the business is healthy but wall street makes so much noice around the misunderstood multilevel model, I believe this company may go private again in the future.

HLF is by far the biggest holding in my portfolio, it also generates a very nice dividend return. HLF key product is a meal replacement shake called Formula one, which is "a meal in a glass".

Products are manily distributed by offering people free shake samples, free wellness evaluations, free body scans with Tanita or Omron and inviting people to join free fitness classes (at the end of which, they can sample a free recovery shake).

Independent distributors (like me) can work as Personal Wellness Coaches, either in a mobile mode (=no need of a physical location) or in nutrition club mode (small offices of 40 square meters where we organize free shake sampling, weight loss challenge, free facial treatments etc).

I personally work in "mobile" mode, but in my organization I have many nutrition clubs too. My business, while started in Dublin (Ireland), is now in 9 countries.

As a stock and option holder, I think this is a great stock to consider. Study its variability, it is possible to make very good returns. Every quarter I am on the investor confcall which is really great (as I have had the opportunity to meet the CEO Michael O Johnson, President Desmond Walsh (he is from Dublin) and other key players numerous times).

If you are serious about studying this company, you should become a distributor as in this way you will have access to a lot more information about product development, country expansion and strategies that should help you better judge the direction of the business and consequently the stock (and options).

Hope my contribution to this board helps

Danilo

Member Avatar getrichdietrying (82.57) Submitted: 5/29/2013 4:16:34 PM
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Member Avatar thedubliner (40.50) Submitted: 5/21/2013 12:03:19 AM

A my beloved Aunt who helped raise me finally got the Visa to come here to the US. Yesterday we are sitting outside talking about what else but rampant corruption in India and how people take advantage of people in need. I told her about Herbalife and she exclaimed "They are here!" at which I saw from her somewhat pained expression how she fell for it as well. In her dire desperate need for money she signed up and worked trying to "sell" Herbalifes products while feeling pretty stupid afterward having spent money to do this all the while being told she isn't working hard enough at the same time to sign up as many people as she can under her so she can continue towards the "large income." I told her it's OK because we have all done stupid things in our hour of desperate needs and it's companies like these that prey on the needy. Besides, she got out of it in a couple of weeks while there are many who are still out there trying and spending their only money giving it away to this company through their scams.

So to you thedubliner and those like you at this company and others just like it that peddle preying on the desperate helpless here are the words fool.com does not allow but you can guess at;

go to hell.

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