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Strategies & Market Trends : Value Investing

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To: richardred who wrote (51255)4/9/2013 2:26:57 PM
From: Paul Senior  Read Replies (2) of 78673
 
NATR: As I said a while back about NATR, "Low p/e, high current ROE. I don't like/understand its business. Not a lot of public history to the company."

There seem to be a number of cosmetic companies/herb or supplement or vitamin companies headquartered in Utah. Some with multilevel marketing or with other "non-standard" (well, imo non-standard) business practices. I don't trust any of these companies -- their products, their advertising, their sale practices, their managements.

Setting my concerns aside, NATR does fall into a buy category for me. As per the Greenblatt model -- essentially low p/e, high roe.
I've gone back now and found that several of the company's products can be bought from Amazon. Importantly here for my stock purchase decision, the Amazon customer reviews of the company's various products are mostly positive.

In spite of my misgivings about the business and the management, I'll hold my nose and go for a few shares of NATR now. In some respects that's similar to NUS -- another in the category and in which I have bought and am holding shares.

finance.yahoo.com
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