Nu Skin (NUS) Slammed As it Gets Bunched With Einhorn Target Herbalife (HLF)
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Nu Skin Enterprises Inc. (NYSE: NUS) is lower for the second straight session and traders are suggesting this could be the doing of hedge fund king David Einhorn.
After getting sacked 8 percent Tuesday, shares of Nu Skin are down another 3 percent Wednesday.
The downside move in Nu Skin started after David Einhorn went after Herbalife (NYSE: HLF) on a conference call yesterday. The exchange created a 20% downside move in Herbalife and it is down another 5% today. Nu Skin and Herbalife have a similar model, using the direct selling approach, which is why traders are lumping the two together.
Some are even suggesting Nu Skin could be Einhorn's real target as he didn't disclose a short position in Herbalife yet. Of course, this is pure speculation.
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After getting sacked 8 percent Tuesday, shares of Nu Skin are down another 3 percent Wednesday.
The downside move in Nu Skin started after David Einhorn went after Herbalife (NYSE: HLF) on a conference call yesterday. The exchange created a 20% downside move in Herbalife and it is down another 5% today. Nu Skin and Herbalife have a similar model, using the direct selling approach, which is why traders are lumping the two together.
Some are even suggesting Nu Skin could be Einhorn's real target as he didn't disclose a short position in Herbalife yet. Of course, this is pure speculation.
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Einhorning the MLM Industry
El Jackalope on May 8, 2012 10:52 AMMark as Spam | Reply to this comment
Wiki: "A hedge fund is an investment fund that can undertake a wider range of investment and trading activities than other funds...As a class, hedge funds invest in a diverse range of assets, but they most commonly trade liquid securities on public markets. They also employ a wide variety of investment strategies, and make use of techniques such as short selling and leverage."
I can't speak for many other MLM companies, but Nu Skin is solid and exceptionally ethical. The organization built by their brilliant founders has blessed the lives of many, especially through their Force for Good Foundation.
It sounds like Einhorn's "strategy" and "leverage" is in need of a thorough investigation.