Seeking Alpha: Little Wrong With Herbalife Other Than Its Valuation

The devil's bargain between Wall Street and growth stocks goes a little something like this: “You give us exactly the growth we expect or more (but never less!) and we'll support extreme valuations that your cash flow probably can't support”. There's also an “or else” attached – if a company disappoints even slightly, there's an outsized price to pay.

Honestly, that's about the only context in which Herbalife (NYSE: HLF) is really disappointing anyone, and perhaps shareholders can count themselves lucky that the stock isn't down even worse against a backdrop of a pretty ugly tape.

More Growth In Q3

Herbalife's growth is almost hard to believe. Apparently there really is gold in guarana, protein shakes, and the other assorted supplements and “solutions” that the company offers through its army of over 2 million independent sellers.

To read the full piece at Seeking Alpha, click here:
Little Wrong With Herbalife Other Than Its Valuation