NATURAL HEALTH TRENDS CORP NHTC S
December 31, 2015 - 4:32pm EST by
utah1009
2015 2016
Price: 33.53 EPS 0 0
Shares Out. (in M): 12 P/E 0 0
Market Cap (in $M): 410 P/FCF 0 0
Net Debt (in $M): -46 EBIT 0 0
TEV ($): 364 TEV/EBIT 0 0
Borrow Cost: Available 0-15% cost

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  • MLM
  • Pyramid Scheme
  • Fraud
  • Small Cap
 

Description

I am short Natural Health Trends Corp (NHTC). I believe the company is a pyramid scheme selling garbage products and its stock will crash when the scheme unravels. Thankfully I haven’t needed to spend $50 million investigating this, nor does my pitch have a 360 page slide deck.

 

NHTC is a “network marketing company” (their words) selling various lotions, powders, juices, and a dream to become wealthy and live a glamorous lifestyle. The products are generic yet make bold promises using comically stupid language. For example, their Cluster X2 is purified water with a “high level of electromagnetic power” that can “increase cellular hydration.” This is like GE marketing lightbulbs as "photonic-based pigmentation enhancement devices." Ultimately, it’s a 4oz bottle of water that costs $75. Considering the ingredients are mostly just water and a couple of fruit juice extracts, it’s disconcerting that the product loudly warns people not to have it touch a metal utensil.

 

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