Nu Skin's Blemish Is Clearing Up
In July, 2005, when China banned direct-sellers from doing business there without a license, Nu Skin Enterprises (NUS ) (NUS) got clobbered: Sales of its skin-care and nutritional products, which had boomed for three years in China, plunged in just weeks from $101 million to $80 million. And its stock dived from 26 to 15. It has edged up to 18.14 since China issued Nu Skin a license on July 30, 2006. Rodney Hathaway of Heartland Advisors, which owns shares, bought in when the stock fell. He sees Nu Skin sales in China, through its one-to-one contact with customers, ramping up again. He figures sales will hit $500 million in three to five years. His 12-month target for the stock: 28. Douglas Lane of Avondale Partners expects the tide to turn as business speeds up again in China. He predicts earnings of 75 cents a share in 2006 on sales of $1.10 billion and $1 in 2007 on $1.15 billion, down from $1.04 on $1.18 billion in 2005.
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