NuSkin Plunges Along With Herbalife
Shares of NuSkin (NYSE: NUS) are getting hit hard for the third day in a row after hedge fund manager Bill Ackman gave a scathing presentation on fellow multi-level marketing company Herbalife (NYSE: HLF) at an investment conference on Thursday.
Ackman's hedge fund, Pershing Square Capital Management, has also set up a website outlining its case against the company. The firm is short at least 20 million Herbalife shares according to the hedge fund manager. The stock has been absolutely devastated in the wake of the accusations leveled by Ackman, despite the fact that analysts are standing behind the company.
Shares are now trading near historically low valuations as HLF plunged another 20 percent on Friday to $27.07 near the closing bell.
NuSkin, which operates a similar business model, was last trading down more than 12 percent to $35.04. The stock has been tracking the activity in Herbalife, although the losses have not been as severe. Nevertheless, NuSkin shares are down roughly 23 percent over just the past 5 days.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.