Herbalife (NYSE:
HLF)
has gotten knocked around hard lately, as well-known investor David
Einhorn has apparently taken some interest in the company and asked some
fairly pointed questions. Although I don't agree with those who have
interpreted his questions as implying that there is any sort of
pyramid scheme
at work, that doesn't mean that there aren't inherent issues with the
Herbalife model. While there is likely to be sustained ongoing demand
for the sort of supplements that Herbalife sells, I wonder whether
Herbalife's model takes too much of the company's growth potential out
of its own hands.
Please read more here:
http://stocks.investopedia.com/stock-analysis/2012/Control-May-Be-Herbalifes-Real-Long-Term-Problem-HLF-MED-VSI-ARNA-VVUS-AVP0604.aspx
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