Natural Health Trends Corp. (NASDAQ: NHTC)
Natural Health Trends Corp. (NHTC), a direct selling and e-commerce company yesterday announced that the allegations that Chinese authorities were investigating the company is false. Additionally the company also announced it has raised its stock repurchase program from $15 million to $70 million.
Natural Health Trends Corp. President Comments
“While we are highly disappointed by these false allegations that have sought to damage our brand, reputation and shareholder value, we are diligently working to defend our Company,” commented Chris Sharng, President of Natural Health Trends Corp. “In the event of an investigation, we would fully cooperate with the Chinese government. We have also had multiple discussions with U.S. market authorities regarding these matters and are working diligently to ensure the integrity of the market for our stock.”
“We are optimistic about our long-term prospects and believe our stock is a very attractive investment. This expansion of our repurchase program is indicative of Natural Health Trends’ ongoing commitment to enhancing shareholder value. We have been conducting business in China for many years and believe it is a fabulous market. Our mostly American-made products have the quality and brand cache to appeal to the fast growing rank of Chinese consumers.” Globe Newswire
NHTC Technical Analysis
NHTC opened at $18.99, down from the prior day’s close of $19.18. As of late afternoon trading on Wednesday NHTC stock is up 13% at $21.73 on favorable news. NHTC has been extremely volatile, with a trading range of $15.95 to $23.30 as of late afternoon Wednesday trading. Taking a closer look at the daily chart we can see that NHTC has been on a steep decline dating back to December 23rd when it was trading at $46.91, equivalent to a 54% drop in price. The price drop can be contributed to allegations the company is being investigated by Chinese Authorities for violating marketing laws. If the allegations do turn out to be false NHTC could be in store for a strong rebound. NHTC has a low float of 7.39 million shares and is trading 5.5 times the normal daily trading volume. NHTC has a very low float and shorts are starting to cover their position, this short squeeze could lead to an impressive run up. For trading purposes, I would be a buyer at current levels looking for the stock to continue its run up in the next couple of weeks and regain some of its losses.
Company Profile
Natural Health Trends Corp., a direct-selling and e-commerce company, provides wellness, beauty, and lifestyle products for consumers or business builders under the NHT Global brand name. The company manufactures and supplies its products through third parties. Its wellness products include liquid, encapsulated, tableted and powder dietary and nutritional supplements, herbal supplements, vitamins, and minerals. The companys beauty products comprise anti-aging and hydrating cleansers, creams, lotions, serums, and toners; and lifestyle products include weight management, intimacy support, and energy enhancing supplements. It operates in North America, Hong Kong, Taiwan, South Korea, Japan, Italy, and Slovenia, as well as in Russia, Kazakhstan, and Ukraine. The company sells its products through its network marketing operations, as well as sells directly to consumers through an e-commerce platform. Natural Health Trends Corp. was founded in 1988 and is headquartered in Rolling Hills Estates, California. Yahoo Finance
