A Huge Multi Level Marketing Party is Underway at $HLF; Pivotal Research Says Stock Could Hit $100

Webster Edgerly would be pleased with this Pivotal Research note, calling for a massive squeeze higher for one of planet earth’s most reprehensible companies. I’m not following how a $200 million settlement with the FTC is a ‘victory’ for the company, aside from the fact the FTC didn’t shut them down altogether.

So because the FTC didn’t label you a fucking Ponzi scheme, all is great? This is a morons way of thinking. Speaking of which, here is that pivotal research note.

Pivotal Research notes HLF reached a deal with the FTC late Thursday which was broadly in line with their previously-published views. The co will pay a $200 million fine to the FTC and $3 million to the Illinois Attorney General. The co will adopt a two-tier membership structure — a structure HLF floated in the Spring of 2013 as a possibility. It will need to show that 80% of product sales are to legitimate end users. The FTC changes are applicable in the U.S. only, a 20% mix. While the co has had certain historic weaknesses in its compliance and oversight, it is a legal and ethical business model with the best-in-industry compliance function today. This is a total victory for Herbalife shareholders and a total defeat for the short camp. Leaving aside the potential for a short squeeze that could take the stock to breathtaking levels in the short run, they believe the deal with the FTC is effectively the “all-clear” for HLF and indeed, USANA Health Sciences (USNA — BUY – $122.26) PT $160; and Nu Skin Enterprises (NUS — BUY – $49.91) PT $60. Thus they expect the stock to re-price rather rapidly to the $80-$100 level.

A biblical styled squeeze of +18% is currently underway.

Other MLM scams, err stocks, are buoyed higher by the HLF ejaculation, including NHTC, NUS, USNA.