| Stock (Symbol) | Stock Price | |
Nu Skin (NUS) |
$55 |
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| Data is as of | Expected to Report | Sector |
February 20, 2015 |
May 04 – May 08 |
Food & Necessities |
| Sharek’s Take | ||
 Nu Skin looks to have turned the corner. The company still hasn’t recovered from its 2014 scandal where it was accused, investigated and eventually fined (just) $500,000 by China for illegal sales practices, but at least now the stock looks to have turned up. Still, this will be a long journey back to $100 a share as sales are still expected to be down during the 1st and 2nd qtr. By 2015 Q3 Nu Skin might have sales growth again, and it also might have a couple of new products to spur sales and positive PR. Company engineers are working on a new skincare system as well as a nutritional suplement offering. At 14 times these depressed earnings estimates this stock has the ability to double or triple in few years. Before the mishap in China Nu Skin was one of the market’s top growth stocks and was considered a leader in skin care innovation. If NUS jumps on high volume on positive news on a new product its developing, I will likely double my position in the stock. NUS made $6 per share in 2013 and is expected to make just $4 this year. If it makes $6 again and gets a 20 P/E it will be a $120 stock. |
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| One-Year Chart | ||
 Notice the saucer pattern NUS has made in the one-year chart. Now we need to see some earnings growth before getting even more excited. But that’s not expected until Q3. Note NUS made $6 in 2013. |
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| Earnings Table | ||
 Nu Skin’s sales dropped 42% last qtr (and 30% 2QtrsAgo) as year-over-year comparisons were tough due to a strong sales in a year-ago period from a new product launch.NUS beat the street by 12 cents, and beat by 19 cents the quarter earlier. Baby steps. Annual Profit Estimates continue to fall, which stinks. Qtrly estimates shows profit growth could come back the 2nd half of 2015. |
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| Fair Value | ||
 For now I’m keeping my Fair Value at 14x earnings, but I’m guessing profit growth will pick back up as salesmen come back to selling Nu Skin products in China now that the scandal is behind us. |
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| Ten-Year Chart | ||
 NUS spiked in 2013 as sales and profits were jumping — and beating the street. I thought I was lucky to get the stock on a dip, but then it lost half its value. Still, 14% annual profit growth over a decade isn’t bad. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
21 of 24 |
Nu Skin has turned the corner and new product launches as well as a more positive public image in China will perhaps to wonders for this stock. I feel when the recovery comes it will be swift and that’s why I continue to hold on. NUS is ranked 21st of 24 stocks in the Growth Portfolio Power Rankings. NUS is not in the Aggressive Growth Portfolio. |
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Aggressive Growth Portfolio
N/A |
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