| Stock (Symbol) | Stock Price | |
Nu Skin (NUS) |
$51 |
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| Data is as of | Expected to Report | Sector |
June 12, 2015 |
Aug 04 – Aug 10 |
Food & Necessities |
| Sharek’s Take | ||
 Nu Skin still hasn’t turned the corner and continues to disappoint. The producer of anti-aging products was investigated by Chinese authorities in 2014 and eventually fined (just) $500,000 by China for illegal sales practices. But this bad PR hurt the company’s reputation more than the fine Nu Skin went on to suspended some sales activities there, lose sales leaders, and had sales and profits fall. I stuck around waiting for a turnaround, and was pleased the company added 150,000 active associates from Q3 to Q4 last year, but in last qtr the company lost 150,000 associates. Ugh. Additionally, Nu Skin was expected to come out with some new product the 2nd half of this year and I haven’t heard any news so far and we are in late June. NUS stock is flatlining and profits look bad the next couple of qtrs. Yes I feel the company will right the ship, but when? At this point I’d rather leave the stock and if it pops higher on good news get back in at a higher price. I will sell NUS today from the Growth Portfolio. |
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| One-Year Chart | ||
 What an ugly one-year chart. I thought NUS had turned the corner last qtr but then the disappointment this qtr with the sales associates and also lower estimates (2015’s fell from $3.96 to $3.72). |
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| Earnings Table | ||
 Nu Skin’s sales fell 19% last qtr which is better than the 42% drop 2QtrsAgo. but still bad. Profit growth continues to be negative.NUS missed estimates by 2 cents after beating the street the past 2 qtrs. Annual Profit Estimates have declined in each of the last 4 qtrs. Qtrly estimates show profit growth could return by Q4 but I don’t have faith in that. |
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| Fair Value | ||
 I feel NUS is fairly valued at this price. What the company needs to do is increase estimates for the stock to rise. |
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| Ten-Year Chart | ||
 NUS was a stock market leader in 2013 and I thought the issues the company dealt with in China would pass. They haven’t. Still, if company scientists develop a new and better skin care solution the stock can fly high once again. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
N/A |
Nu Skin is a good company with great skin care products, but has ongoing issues in China that just won’t go away. I’m tired of the empty promises and will sell the stock but keep it on my radar to possibly purchase at a later time if NUS’s scientists come up with a new product to spur sales and profits. NUS will be sold from the Growth Portfolio today. NUS was not in the Aggressive Growth Portfolio. |
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Aggressive Growth Portfolio
N/A |
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