How Herbalife and Nu Skin Escaped Today's Health-Care Stock Bloodbath

Amidst a wash of suffering stocks in health care today, Herbalife and Nu Skin managed to shine.

Mar 24, 2014 at 5:35PM

In today's look at the winners and losers in health care and biotech, the biggest story is the losses across the board in biotech stocks. The iShares Biotechnology Index (NASDAQ:IBB) sold off 3% today, as talk of a biotech bubble increases and concerns over valuations mount. The stocks taking the biggest hits today were the more speculative plays, whose pipelines are still in the development stage.

However, two stocks managed to emerge as winners today amid a broader health-care sell-off. Nu Skin (NYSE:NUS) saw a major pop today after news emerged today related to the ongoing investigation of the company in China. The stock saw an enormous run-up in 2013, followed by getting crushed in early 2014 on news that the Chinese government would be investigating its marketing practices. The country has recently been tightening its scrutiny on direct to consumer sales companies to prevent pyramid schemes. Today's announcement from the Chinese government, however, was that the fine levied against Nu Skin would only amount to $540,000, well below what may were anticipating. Nu Skin shares skyrocketed on the news, bringing up shares of Herbalife (NYSE:HLF) as well, as Herbalife is also a direct-to-consumer sales company, which is also under investigation in the U.S. for its marketing practices, and has had its practices in China called into question as well.

In this video, Motley Fool health-care analyst David Williamson takes investors through the broader biotech sell-off, and discusses the finer points of the controversy surrounding Nu Skin and Herbalife.

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David Williamson has no position in any stocks mentioned. The Motley Fool has options on Herbalife. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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