Editor's Note: Hedgeye Managing Director Howard Penney will send subscribers a full research report next week explaining our bearish thesis on the stock. In the meantime, below is a note written by CEO Keith McCullough.
"... Nu Skin recently released detailed information surrounding VitaMeal sales and profitability. The new information they provided conflicted with the information they gave shareholders on the 3Q15 earnings call.
Clearly, by putting out this new information, management is trying to calm the skeptics about the issues surrounding VitaMeal. Unfortunately, the new information sheet provided by the company only raised more questions about VitaMeal than it answered.
Now one of the biggest concerns we see coming out of this new information is where did all the money go? Which is arguably a bigger issue than we saw rising out of the VitaMeal controversy originally. Now, the original concerns are still there, they are just further compounded by this additional question.
Howard Penney reiterates the SELL call, on green.