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  "documentTitle": "Herbalife, Ltd. (HLF)",
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  "authorName": "David Klafter",
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  "presentationDate": "2014-11-06 00:00:00",
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      "text": "Not surprisingly they are dampening volume and sales growth in the short run, though to a greater extent than the company had anticipated.",
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      "text": "Quotes from Michael Johnson and Des Walsh regarding business model changes and the 'build-it-better' program.",
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      "text": "On Herbalife’s recent quarterly conference call, Mr. Ramey challenged the Company’s management to explain why its earnings guidance failed to predict accurately the growth-limiting effect of its rule changes.",
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      "text": "Mr. Ramey’s questions on the conference call include the following: So easy to play Tuesday morning quarterback here, but the new marketing initiatives all appear to have an impact of slowing growth or sales in the near term...",
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      "text": "HLF has been taking a variety of important steps to make involvement in its business less risky for a potential distributor... Not surprisingly they are dampening volume and sales growth in the short run.",
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      "kind": "paragraph",
      "text": "Membership to the impact of the lawyers. Similarly, Mr. Ramey reports that, in Brazil, there are “distractions in distributor leadership re compliance.”",
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      "kind": "paragraph",
      "text": "Another analyst, Meredith Adler of Barclays, who has been supportive of HLF, issued a new report dated November 5, 2014, in which she lowered her price target by 15% from $94 to $80 (copied enclosed).",
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      "text": "\"We are making changes to the business model that will not only improve our way of doing business but also improve our results. This period of transition for the company is an important chapter in our history and one that will make us stronger. Some of these changes, however, take time to be digested and implemented by our members and as a result, this has affected our performance for the short term, yet we manage for the long term, and we firmly believe that the changes we are making are all the right ones for the healthy growth of our company, and they give us tremendous confidence for our future\" — Michael Johnson, 11/4/2014; \"We've implemented a number of build-it-better initiatives. We haven't had a build-it-better program for many years but recently, we've accelerated that partially in response to some of the outside noise. So when you got things like the nomenclature change, and then you follow that with the simplified pricing, and then you follow that with a greater level of claims training and enforcement, and then you roll in these marketing plan changes, I think it's the accumulation of efforts that's just causing a temporary reset as we have -- as our members out there just get used to the new situation and just a new game plan.\" — Des Walsh, 11/4/2014",
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