The Absurdity Of 'Direct Selling Industry' Data

Admin   |   26 December, 2014   |   303   |   3980

Summary

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  Investment decisions on Herbalife and other MLM companies cannot be based on reliable data.


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  What passes for industry data on direct selling is demonstrably false, based on its own inconsistency and mathematical impossibility.


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  Data published by the "Direct Selling Industry" contradicts itself, and completely contradicts Herbalife's narrative of how "direct selling" operates.


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  The question of "pyramid scheme" regarding direct selling requires simple and direct investigation of company revenue and distributor income sources. Industry data should be assiduously avoided.

With billions of dollars, some of it from small investors or perhaps pensions, non-profits or universities, resting on Herbalife's (NYSE:HLF) fortunes and fate, one would think there are solid statistical data to support the risk these individuals and institutions have been exposed to by their financial managers. Normally, Wall Street managers measure a company's value and its risks against its competing peers within its commercial sector, and they measure the commercial sector against other sectors, all competing for capital. Measurements are quantitative, based on hard numbers, not just speculative hype, which the world's oceans are too small to contain.