Friday, April 17, 2015

Fire!

NHTC Crashes

When you have a stock that has gone up as sharply as NHTC in 4 months (100%) and it is a micro cap, everyone is nervous. Especially when it is an MLM and we have seen MLMs like NUS and HLF cut in half recently.

So when a Seeking Alpha article came out yesterday inferring that NHTC has a lot in common with NUS, it started a stampede for the exits.  The article had no proof, ather stole a page from Bill Ackman's hit pieces on HLF - showcasing some NHTC products and asking why anyone would pay $73 for it. In addition, took exerts from 10-K regarding risks to the company (you could take the risks listed for any company from their 10-K and build a case not to buy the company as lawyers try to CYA by includin every conceivable risk). The risk highlighted was that China sales were in Hong Kong and then taken across into mainland China (
Natural Health Trends: Defying Logic).

I have no way of knowing whether NHTC is selling their products via illegal approaches. I have no way of knowing if sales are bogus/inflated. I too am nervous having gained 100% (and now 55% with yesterday's drop). NUS is the only MFI stock I sold prematurely, when the Chinese investigation was revealed - that turned out to be a very good move.  I do not think one should sell based on what is right now a "hit piece" article, I would caution people buying in and if one sees fire to go with the smoke; I'd be likely to pull the trigger as well.

It is odd, I just saw that this article actually first came out March 20th for "pro" subsrcibers.  Only yesterday was it broadly available.

1 comment:

ChrisO said...

Don't you find it "interesting" that the article was made available to the "masses" right after the security spiked up?

I really do believe some of these "authors" are using illegal activities to make money (they are short players). In fact had such happen to one of my securities and his tag name had "short" in it.