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| Herbalife Ltd - BidnessEtc |
Herbalife International is a US based
company which deals in the development, manufacturing and marketing of health and skin care products. The company is traded on New York Stock Exchange (NYSE)
with the ticker ‘HLF’ and the HLF stock price is
currently at $54. The company has market capitalization of over $5.5 billion. The
company has been very successful since its inception with sales rocketing over
$4 billion in the previous year. The company has a diverse distribution network
with distributors in over 91 countries. Herbalife has a multi-level marketing
strategy in which the company’s distributors can earn additional commissions
from the distributors under them. The company has recently been facing
allegations by the public that the company is using illegal practices for its
marketing strategy. The supporters of the Multi-Level Marketing strategy are in
the favor of the company while the others which are not in the favor of this strategy
are usually the short sellers and to some extent their strategy has worked
because HLF stock has lost over $10 since the court
battles on the issue started. Herbalife’s major stakeholder LCAHN has declared
the company a very good investment in the long term and said that these issue
are not of much importance since the allegations are not very authentic and the
court will be in their favor.
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