Nuskin stock – NUS

When my wife and I were getting our introduction to Nuskin (my wife’s friend joined recently and was telling us about it – now my wife and I have become independent distributors and if you’re curious about our experiences, you can my network marketing blog), one of the things they said was very important was the stability of the company (If the network marketing company folds then all the hard work you did creating a network has been wasted).

To prove to me that Nuskin was stable they talked about its stock. They said Nuskin stock was a good investment. Let’s take a look:

Nuskin makes skin care, cosmetic, and other personal care products (like toothpaste). Nuskin owns Pharmanex, which makes all-natural dietary supplements and Big Planet, which has technology-related products (like e-security). In 2003, Nuskin and Pharmanex each acounted for over 470 million in sales, while Big Planet made about 38 million in sales. These products are sold through distributors. Nuskin claims to have over 800,000 of them, including about 30,000 executives (active distributors).

Nuskin is also committed to entering the mainland China market and has (as of June 30, 2004) 9,874 employees, 5,586 of whom are employed full-time sales representatives in Mainland China.

So that’s the context, how about the stock? The PEG is an OK 1.46. Combine that with the 8 cent quarterly dividend (1.49% yield) and you’ve got a stock that I’m not thrilled about but am willing to look into further.

Their third quarter earnings showed strong growth in China (73%) but the overall growth forecast is more tame: the company forecast 2005 revenue growth of 5 percent to 7 percent, and earnings-per-share growth of 10 percent to 15 percent.

While I’m convinced the company is stable, I’m don’t see any reason to specualte with Nuskin stock. I’m sticking with my index investing, my REITs, and my metals. Plus a few speculative stocks, but these all have (in my opinion) more growth potential than Nuskin.

You can reqest investor information here: http://www.nuskinenterprises.com/corp/investors/info_request.shtml?linkID=9&oldLinkID=1

5 Responses to “Nuskin stock – NUS”

  1. tcl says:

    i am a new to this website and was introduced to nuskin by my friend recently. i haven’t join as a member but is certainly keen. what is your opinion or comments on the overall business growth of this company especially now when they have launched the bioscanner which they claimed is a breakthrough technology. how would you compare nuskin to amway?

  2. James Trotta says:

    I don’t mean to pry, but didn’t your friend explain NuSkin business growth to you? I don’t mean the company’s overall growth which will be strong, but I mean the growth of your personal business since you said you were keen on NuSkin. If you’re friend doesn’t have a plan for helping you grow your business, you might consider finding a more expereinced sponsor.

    I would choose NuSkin over Amway since NuSkin products are reaaly extraordinary. Also NuSkin has a better compensation plan than Amway.

  3. in says:

    Personally, I was introduced to Nuskin before, but I didn’t join the scheme then, because I thought it to be pyramid scheme. Besides, I tried the products, and I don’t like it. There’s also this ‘maintenance’ fee which has to be maintained. I rejected my friend. Years later, another friend of mine introduced me to Amway. The requirements are simple..if you think the products are good, you can be a pure prosumer. And I do believe the products are good, so much so that I want to share with people the experience. My central focus was never on making profits, but because I enjoyed using the products, I introduced to people, money came as a plus. Whichever MLM you choose, the first thing you have to do is to be convinced by the products before you can convince others. My personal experience? I just think Amway is the one that gets my heart fluttering. =)

  4. Kai says:

    I like your analysis of the Nu Skin Stock. What I am excited about, is what the scanner can do for their business. With the recorded growth in LifePak-sales in their automatic delivery programmes, this must give some effect to their growth and earnings?

    Any thoughts on this?

  5. James Trotta says:

    Kai and In – thank you for the comments. The scanner will likely impact sales particularly in countries like America where the average score is quite low. In Korea, people tend to score pretty high so the scanner has less impact in a country like Korea. Photomax is another big one. It is growing fast and should begin really affecting earnings in 2007.

    In, I agree with you that you choose the company with the products you are going to use over the company with products you don’t like. I see both NuSkin and Nikken being better than Amway here because NuSkin and Nikken products are unique.

    Of course that’s just a matter of personal opinion, but what’s not is the ‘maintenance’ fee you speak of. NuSkin is free. You need to correct your information.