The Network Marketing HOT LIST: Ethos Environmental, Herbalife, USANA, Avon
Herbalife Ltd. NYSE:HLF, Ethos Environmental Inc. PINK:ETEV, USANA Health Sciences, Inc. NYSE:USNA, Avon Products, Inc. NYSE:AVP
Multi Level Marketers feature on our Hot List today.
Herbalife Ltd. NYSE:HLF
Herbalife Ltd. (Herbalife), incorporated on April 4, 2002, is a global network marketing company that sells weight management, nutritional supplement, energy, sports and fitness products, and personal care products. Herbalife sells its products in 72 countries through a network of over 2 million independent distributors.
The Company offers science-based products in four principal categories: weight management, targeted nutrition, energy, sports and fitness, and Outer Nutrition. As of December 31, 2009, the Company acquired assets of Micelle Laboratories, a Lake Forest, California contract manufacturer of food and nutritional supplements.
The Company’s products are often sold in programs, which comprises a series of related products designed to simplify weight management and nutrition for its consumers.
These programs target specific consumer market segments, such as women, men or children, as well as weight management customers and individuals looking to enhance their overall well-being.
As of December 31, 2009, Herbalife marketed and sold 127 products encompassing over 3,600 stock keeping units (SKUs) through its distributors and had approximately 1,942 trademarks worldwide.
Weight Management
The Weight Management product portfolio includes meal replacement shakes, weight-loss enhancers, appetite suppressors and a variety of healthy snacks. These products constitute 63% of Herbalife’s net sales during the year ended December 31, 2009.
Formula 1 is a healthy meal with soy protein, essential vitamins, minerals, herbs and nutrients that is available in seven flavors and can help support weight management. Personalized Protein Powder is a soy and whey protein product developed to be added to Formula 1.
Weight-loss enhancers, including Total Control, address specific challenges associated with dieting, such as lack of energy, hunger and food craving, fluid retention, decreased metabolism and digestive challenges, by building energy, boosting metabolism, curbing appetite and helping to promote weight loss. Healthy snacks are formulated to provide between-meal nutrition and satisfaction.
Targeted Nutrition
The Company markets numerous dietary and nutritional supplements designed to meet its customers’ nutritional needs. Each of these supplements contains herbs, vitamins, minerals and other natural ingredients and focuses on specific lifestages of its customers, including women, men, children and those with health concerns, including heart health, healthy aging, digestive health or immune solutions.
Niteworks is a product that supports energy, circulatory and vascular health and enhances blood flow to the heart, brain and other vital organs. Garden 7 is designed to provide the phytonutrient benefits of seven servings of fruits and vegetables, and has anti-oxidant and health-boosting properties. Best Defense is a drink that boosts immunity.
Energy, Sports and Fitness
Liftof is an energy drink containing B-vitamins, guarana, ginseng, ginkgo and caffeine to increase energy and improve mental clarity for better performance throughout the day. In 2007, Herbalife launched H3O Fitness Drink to provide rapid hydration, sustained muscle energy plus antioxidant protection for people living a healthy, active lifestyle. In 2008, it introduced two new flavors of Liftoff, which included Tropical Fruit and Lemon Cola.
Outer Nutrition
Herbalife’s Outer Nutrition products complement its weight-management and targeted nutrition products and focuses to improve the appearance of the body, skin and hair. These products include skin cleansers, toners, moisturizers and facial masks, shampoos and conditioners, body-wash items, and a selection of fragrances for men and women.
NouriFusion Multivitamin skin care products are formulated with antioxidant Vitamins A, C and E. Skin Activator product is a face cream that contains a collagen-building Glucosamine Complex to reduce the appearance of fine lines and wrinkles.
Literature, promotional and other products
The Company also sells literature and promotional materials, including sales aids, informational audiotapes, videotapes, compact discs (CDs) and digital versatile discs (DVDs) designed to support distributors’ marketing efforts, as well as start-up kits called International Business Packs for new distributors. In 2006, the Company introduced BizWorks, a retail Website for the Company’s distributors to enhance the online experience.
The Company competes with NuSkin Enterprises, Nature’s Sunshine, Alticor/Amway, Melaleuca, Avon Products, Oriflame, Mary Kay, Weight Watchers, Jenny Craig, General Nutrition Centers and Wal-Mart.
Valuation Ratios
| Company | Industry | Sector | S&P 500 | |
| P/E Ratio (TTM) | 17.15 | 33.09 | 20.76 | 17.62 |
| P/E High – Last 5 Yrs. | 20.90 | 31.33 | 1,633.16 | 94.97 |
| P/E Low – Last 5 Yrs. | 6.45 | 16.79 | 16.04 | 12.41 |
| Beta | 1.59 | 0.42 | 0.53 | 1.28 |
| Price to Sales (TTM) | 1.83 | 3.39 | 2.06 | 2.30 |
| Price to Book (MRQ) | 9.24 | 15.42 | 3.32 | 2.89 |
| Price to Tangible Book (MRQ) | 32.01 | 16.19 | 10.32 | 4.39 |
| Price to Cash Flow (TTM) | 13.46 | 22.94 | 12.51 | 8.67 |
| Price to Free Cash Flow (TTM) | 20.58 | 7.58 | 9.23 | 57.06 |
| % Owned Institutions | – | – | – | – |
Dividends
| Company | Industry | Sector | S&P 500 | |
| Dividend Yield | 1.11 | 1.75 | 1.85 | 1.75 |
| Dividend Yield – 5 Year Avg. | 1.47 | 1.57 | 1.33 | 2.46 |
| Dividend 5 Year Growth Rate | – | 10.30 | 9.61 | -3.79 |
| Payout Ratio(TTM) | 17.30 | 42.36 | 63.06 | 36.95 |
Growth Rates
| Company | Industry | Sector | S&P 500 | |
| Sales (MRQ) vs Qtr. 1 Yr. Ago | 28.52 | 13.29 | 7.08 | 8.08 |
| Sales (TTM) vs TTM 1 Yr. Ago | 20.20 | 11.03 | 6.92 | 10.49 |
| Sales – 5 Yr. Growth Rate | 11.78 | 10.08 | 11.89 | 7.57 |
| EPS (MRQ) vs Qtr. 1 Yr. Ago | 70.90 | 4.73 | 1,485.55 | 57.61 |
| EPS (TTM) vs TTM 1 Yr. Ago | 55.16 | – | – | – |
| EPS – 5 Yr. Growth Rate | 29.43 | 11.10 | 8.49 | 4.96 |
| Capital Spending – 5 Yr. Growth Rate | 16.65 | 3.61 | 10.72 | 3.68 |
Ethos Environmental Inc. PINK:ETEV
Ethos Environmental Inc. announced that on December 31, 2010 it completed a merger with Regeneca International, Inc. Regeneca is a consumer goods company that focuses on commercializing natural products that are good for the individual and the environment.
With a track record of sales of over $40 million dollars in television, radio, and online sales through direct-to-consumer channels, the Regeneca’s™ leadership team has a proven formula for success in a very difficult arena – Direct Response Marketing. Over 120,000 customers have called or gone online to purchase products.
Regeneca™ has now opened their doors to those interested in partnering with them in their direct response business. With Regeneca’s innovative Direct Response Network Marketing Strategy (DRNM), real, reliable and even substantial residual income can be realized by owning a Regeneca™ business.
The Regeneca™ business is a powerful and unique way to create the freedom and lifestyle you have always wanted. Explore how our (IBO) Home Business can help build your business. Regeneca™ pays you in 7 different ways through our lucrative compensation program. We invite you to find out for yourself just what our DRNM model is and how you can be a part of the NEW AGE in Home Business Ownership.
Direct Response Network Marketing or DRNM is a revolution in the home business industry. By combining three multi-billion dollar industries (Direct Response, Network Marketing, and Consumer Driven), Regeneca is paving the way for your success as an Independent Business Owner* (IBO). Regeneca™ offers you the opportunity to start your own direct response business directly from home. It’s like owning your own television infomercial business operating with the benefits of your own home-based business.
Regeneca will produce and air its own infomercial campaigns for its products. Consumers who call in will be directed to your independent business where you are able to build your own network of customers!
Viagra and Cialis were level in terms of sales last year, which raises the question; could Cialis go on to claim the title of ‘world’s most popular impotence treatment?’ and what of Regeneca’s new product launched last weekend in Las Vegas, Regenerect.
The brand name Viagra is synonymous with erectile dysfunction treatment. One survey showed that 98% of adult Americans, when asked, were aware of what the drug is, and what its purpose is. Viagra is tied with the idea of impotence treatment in the same way that ‘Xerox’ is tied to the term printers or ‘Google’ is tied to search engine.
Viagra does not have a monopoly on impotence treatment, as these latest figures show. Viagra sales fell 9% to $499 million in 2010, while Cialis sales rose to $465.9 million. If both drugs followed the same trends over the next year, Cialis would become the most popular erectile dysfunction treatment worldwide.
Regeneca is the new player Regenerect is an erectile stimulant that claims increases the size and duration of erections.
Regenerect is a dietary supplement containing a drug-free blend of premium quality natural ingredients in a gelatin capsule. One capsule taken with a full glass of water (8oz) works within 90 minutes and the effects last for up to 3 days.*
Viagra and Cialis work in a similar way. Both are highly effective at helping men to overcome erectile dysfunction. However, while Viagra lasts for four hours, Cialis lasts for up to 36 hours. Cialis has been dubbed ‘the weekender’ pill for its long last impact. Regenerect claim 3 days, making it a long-weekender.
Regenerect are so sure they are Giving Away the product, click here to try the product free.
Speak to your physician if you have erectile dysfunction, but are unsure of which treatment would be most suitable for your individual situation.
USANA Health Sciences, Inc. NYSE:USNA
USANA Health Sciences, Inc. (USANA) develops and manufactures high-quality, science-based nutritional and personal care products, with a commitment to continuous product innovation and sound scientific research. Its customer base consists of two types of customers: Associates and Preferred Customers.
Associates are independent distributors of its products, who also purchase its products for personal use. Preferred Customers purchase its products for personal use and are not permitted to resell or to distribute the products. As of January 2, 2010, it had 199,000 active Associates and 67,000 active Preferred Customers worldwide.
USANA sells products from two primary product lines: USANA Nutritionals, which includes high-quality supplements and functional foods, and Sense-beautiful science (Sense), a line of skin and personal care products.
USANA Nutritionals
The Essentials category includes core vitamin and mineral supplements that provide a foundation of nutrition for every age group. The Essentials are designed to promote optimal health with vitamins, minerals and antioxidants.
USANA offers Usanimals, a formulation of vitamins, minerals and antioxidants, and Body Rox, a nutritional supplement containing 31 vitamins, minerals, antioxidants and co-factors for adolescents who are 12 to 18 years old. USANA Essentials for adults consists of two products: Mega Antioxidant, a balanced blend of 30 vitamins, antioxidants and other nutrients to support cellular metabolism and to counteract free-radical damage, and Chelated Mineral, a spectrum of minerals, in balanced amounts and absorbable forms.
The USANA Essentials are included in the HealthPak 100, a pillow pack that also includes some Optimizers. In addition, USANA’s customers in the United States have the option of creating their own customized pre-packaged supplement regimen, similar to the HealthPak 100, called MyHealthPak.
The Optimizers support cardiovascular health, skeletal/structural health, digestive health and are intended to be used in conjunction with the Essentials. Products in this category include Proflavanol, Poly C, Procosa II, CoQuinone 30, BiOmega-3, E-Prime, BodyRox Active Calcium Chewable, Active Calcium, PhytoEstrin, Palmetto Plus, Ginkgo-PS, Garlic EC, Visionex, OptOmega, PureRest and Hepasil DTX.
It also introduced two Optimizers during 2009, a Vitamin D booster supplement and a probiotic supplement. The Vitamin D booster is a seasonal product that is available during the winter months. The Probiotic product contains a blend of probiotic bacteria that has been clinically proven to survive the acidic environment of the stomach and to colonize the gastrointestinal tract.
USANA Foods is the third USANA Nutritionals product line that includes low-glycemic meal replacement shakes, snack bars and other related products that provide optimal macro-nutrition (complex carbohydrates, complete proteins, and beneficial fats) in tasting and convenient formats.
USANA Foods can be used along with Essentials and Optimizers to provide a diet and sustained energy throughout the day. USANA Foods include Nutrimeal, Fibergy, and SoyaMax drink mixes, Nutrition Bars and Rev3 energy drinks. Its RESET weight management program and the accompanying RESET kit are also part of the USANA Foods line.
Sense-Beautiful Science
The Sense-beautiful science product line includes science-based personal care products that support healthy skin and hair by providing topical nourishment, moisturization and protection. These products are designed to complement inner nutrition for the skin provided by the USANA Nutritionals.
Sense products are manufactured with its self-preserving technology, which uses a blend of botanicals, antioxidants and active ingredients to keep products fresh, without adding traditional chemical preservatives. Products in this line include Perfecting Essence, Gentle Daily Cleanser, Hydrating Toner, Daytime Protective Emulsion, Eye Nourisher, Night Renewal, Serum Intensive, Rice Bran Polisher, Creme Masque, Revitalizing Shampoo, Nourishing Conditioner, Firming Body Nourisher, Energizing Shower Gel and Hand Therapy.
All Other
The Company develops and sells material and online tools that are designed to assist its Associates in building their businesses and in marketing its products. These resource materials and sales tools include product brochures and business forms that are designed by it and printed by outside publishers.
In addition, it provides reprints of other commercial publications that feature USANA and may be used as a sales tool by its Associates. It also periodically contract with authors and publishers to produce or provide books, tapes and other items that deal with health topics and personal motivation, which it then sells to its Associates.
Valuation Ratios
| Company | Industry | Sector | S&P 500 | |
| P/E Ratio (TTM) | 12.38 | 33.09 | 20.76 | 17.62 |
| P/E High – Last 5 Yrs. | 23.45 | 31.33 | 1,633.16 | 94.97 |
| P/E Low – Last 5 Yrs. | 13.93 | 16.79 | 16.04 | 12.41 |
| Beta | 0.72 | 0.42 | 0.53 | 1.28 |
| Price to Sales (TTM) | 1.06 | 3.39 | 2.06 | 2.30 |
| Price to Book (MRQ) | 3.79 | 15.42 | 3.32 | 2.89 |
| Price to Tangible Book (MRQ) | 4.27 | 16.19 | 10.32 | 4.39 |
| Price to Cash Flow (TTM) | – | 22.94 | 12.51 | 8.67 |
| Price to Free Cash Flow (TTM) | – | 7.58 | 9.23 | 57.06 |
| % Owned Institutions | – | – | – | – |
Dividends
| Company | Industry | Sector | S&P 500 | |
| Dividend Yield | – | 1.75 | 1.85 | 1.75 |
| Dividend Yield – 5 Year Avg. | 0.00 | 1.57 | 1.33 | 2.46 |
| Dividend 5 Year Growth Rate | – | 10.30 | 9.61 | -3.79 |
| Payout Ratio(TTM) | – | 42.36 | 63.06 | 36.95 |
Growth Rates
| Company | Industry | Sector | S&P 500 | |
| Sales (MRQ) vs Qtr. 1 Yr. Ago | 20.56 | 13.29 | 7.08 | 8.08 |
| Sales (TTM) vs TTM 1 Yr. Ago | 18.18 | 11.03 | 6.92 | 10.49 |
| Sales – 5 Yr. Growth Rate | 10.44 | 10.08 | 11.89 | 7.57 |
| EPS (MRQ) vs Qtr. 1 Yr. Ago | 12.62 | 4.73 | 1,485.55 | 57.61 |
| EPS (TTM) vs TTM 1 Yr. Ago | 24.21 | – | – | – |
| EPS – 5 Yr. Growth Rate | 7.12 | 11.10 | 8.49 | 4.96 |
| Capital Spending – 5 Yr. Growth Rate | -0.56 | 3.61 | 10.72 | 3.68 |
Avon Products, Inc. NYSE:AVP
Avon Products, Inc. (Avon), incorporated on January 27, 1916, creates, manufactures and markets beauty and non-beauty-related products. The Company’s product categories are Beauty, Fashion and Home. Beauty consists of color cosmetics, fragrances, skin care and personal care. Fashion consists of fashion jewelry, watches, apparel, footwear, accessories and children’s products.
Home consists of gift and decorative products, housewares, entertainment and leisure products and nutritional products. Its business is conducted globally in one channel, direct selling. Its segments are based on geographic operations in six regions: Latin America; North America; Central & Eastern Europe; Western Europe, Middle East and Africa; Asia Pacific; and the People’s Republic China.
It has centralized operations for Global Brand Marketing, Global Sales and Supply Chain. Its international operations are conducted through subsidiaries in 63 countries and territories outside of the United States. In addition to these countries and territories, its products are distributed in 41 other countries and territories through distributorships.
In July 2010, the Company completed the acquisition Silpada Designs, Inc. (Silpada), a direct seller of jewelry products, primarily in North America. In March 2010, the Company completed the acquisition Liz Earle Beauty Co. Limited (Liz Earle).
The Company manufactures and packages almost all of its Beauty products. Almost all of its Fashion and Home products are purchased from various suppliers. In addition, it designs the brochures that are used by the representatives to sell its products. During the year ended December 31, 2010, its Beauty products accounted 71%, Fashion products accounted 19% and Home products accounted 10% of net sales respectively.
Valuation Ratios
| Company | Industry | Sector | S&P 500 | |
| P/E Ratio (TTM) | 21.76 | 33.09 | 20.76 | 17.62 |
| P/E High – Last 5 Yrs. | 32.68 | 31.33 | 1,633.16 | 94.97 |
| P/E Low – Last 5 Yrs. | 11.81 | 16.79 | 16.04 | 12.41 |
| Beta | 1.49 | 0.42 | 0.53 | 1.28 |
| Price to Sales (TTM) | 1.19 | 3.39 | 2.06 | 2.30 |
| Price to Book (MRQ) | 7.67 | 15.42 | 3.32 | 2.89 |
| Price to Tangible Book (MRQ) | 27.32 | 16.19 | 10.32 | 4.39 |
| Price to Cash Flow (TTM) | 16.34 | 22.94 | 12.51 | 8.67 |
| Price to Free Cash Flow (TTM) | – | 7.58 | 9.23 | 57.06 |
| % Owned Institutions | – | – | – | – |
Dividends
| Company | Industry | Sector | S&P 500 | |
| Dividend Yield | 3.11 | 1.75 | 1.85 | 1.75 |
| Dividend Yield – 5 Year Avg. | 2.52 | 1.57 | 1.33 | 2.46 |
| Dividend 5 Year Growth Rate | 5.92 | 10.30 | 9.61 | -3.79 |
| Payout Ratio(TTM) | 64.41 | 42.36 | 63.06 | 36.95 |
Growth Rates
| Company | Industry | Sector | S&P 500 | |
| Sales (MRQ) vs Qtr. 1 Yr. Ago | -4.56 | 13.29 | 7.08 | 8.08 |
| Sales (TTM) vs TTM 1 Yr. Ago | 4.39 | 11.03 | 6.92 | 10.49 |
| Sales – 5 Yr. Growth Rate | 5.92 | 10.08 | 11.89 | 7.57 |
| EPS (MRQ) vs Qtr. 1 Yr. Ago | -19.96 | 4.73 | 1,485.55 | 57.61 |
| EPS (TTM) vs TTM 1 Yr. Ago | -5.65 | – | – | – |
| EPS – 5 Yr. Growth Rate | -5.53 | 11.10 | 8.49 | 4.96 |
Shayne Heffernan
Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.
Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.
Related posts:
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- Herbalife Ltd. Announces First Quarter 2011 Earnings Release Date and Investor Call
Category: Direct Selling, Network Marketing
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