Greenberg: Nu Skin's Lesson on Short Squeezes
"We're very optimistic about the future. On a personal note, when I sit in our conventions and when I see the level of energy and enthusiasm, I sit there and wonder how in the world anyone could short Nu Skin, and our job here at corporate headquarters is to make those people really nervous, and that's what we're going to do."The stock actually meandered for eight months (sophisticated investors tend to see through, and often get nervous, when companies attack on critics) before nearly tripling. (That'll show those shorts).
Reality: What goes up fast, can go down faster. Companies that feel compelled to attack shorts have a history of somehow imploding. Great management tends to go about doing what it does best -- managing. If it does a good enough job, the market will follow. P.S. The People's Daily, the communist party mouthpiece, was out with another piece on Nu Skin. Seems it wasn't happy with the company's claim that its original piece was "inaccurate and exaggerated." Moral of story: If a government-backed paper attacks you, don't fire back if your growth is tied to that country. -- Written by Herb Greenberg in San Diego Follow @herbgreenberg