Can Multi-Level Marketers Shake Off Short Sellers?
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January 24, 2013 - 2:27am
Investing Daily Article of the Week
by Ari Charney, Featured Expert, Investing Daily
It’s hard not to be utterly dismissive of multi-level marketing firms (MLM). After all, a passing mention of Amway tends to elicit involuntary eye-rolling, as it conjures up imagery of “get rich quick” seminars led by impossibly enthusiastic pitchmen. Then there’s the deep-seated cultural skepticism that all MLMs are simply pyramid schemes.
And if these negative connotations aren’t already enough, there’s the epic battle underway among hedge funds over whether the long-term trajectory of Herbalife’s (NYSE: HLF) share price is ultimately zero.
But I keep seeing shares of MLMs listed among the holdings of mutual funds that I respect. For instance, the top-performing mutual funds managed by small-cap value specialists Royce & Associates hold 12.6 percen...
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