Why Herbalife Is Poised to Underperform
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, nutritional-supplement network marketing company Herbalife has received an alarming one-star ranking.
With that in mind, let's take a closer look at Herbalife and see what CAPS investors are saying about the stock right now.
Los Angeles, Calif. (1980)
Chairman/CEO Michael Johnson
CFO John DeSimone
Return on Capital (average, past 3 years)
$333.5 million/$489.6 million
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 32% of the 654 members who have rated Herbalife believe the stock will underperform the S&P 500 going forward.
Just yesterday, one of those Fools, All-Star Brettmj, succinctly summed up the Herbalife bear case for our community: "Overpriced products, even if it isn't classified as a pyramid scheme this one will die off. [Underperform call] might go into the red for awhile but eventually people will come around to much better cheaper alternatives that don't have questionable sales tactics."
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The article Why Herbalife Is Poised to Underperform originally appeared on Fool.com.Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has the following options: long Jan. 2014 $50 calls on Herbalife. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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