Nu Skin Enterprises (NYSE:NUS) fell an additional 10% on Friday after Thursday's plummet of 29%, following a report that the Chinese government will investigate the company as a possible pyramid scheme. Nu Skin is heavily reliant on the Chinese market for growth, so such an investigation will affect the stock negatively, even if nothing is found.
In this video, Fool health-care analyst David Williamson looks at Nu Skin and its relationship with the Chinese market. He tells investors just how strong of an impact this investigation could have on the stock, and whether this week's precipitous fall means a buying opportunity, or that it's time to get out.
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.