This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Herbalife Investors Can Look to China for a Break from Bad News

BEIJING (TheStreet) -- The city of Nanjing, China, is giving Herbalife (HLF - Get Report) investors good reason to stay positive despite the company's ugly dispute with hedge fund manager and investor activist Bill Ackman.

The city government Tuesday announced a deal with Herbalife paving the way for the U.S. company to build "a leading, global scale production base" at the Nanjing Jiangning High-Tech Industrial Park.

Terms were not disclosed, and Herbalife did not make an announcement. But the government's Web site said the plant will be "heavily invested" and should open in late 2015.

Pershing Square's Herbalife Presentation: Live Blog

Bill Ackman Says He’s Spent $50 Million on Herbalife Battle

Netflix Just Exceeded A Big Milestone: 50 Million Members Worldwide

The industrial park is already home to Honeywell (HON), Emerson (EMR), ThyssenKrupp (TYEKF) and other western company factories.

China is a fast-growing market for the global nutritional supplements supplier. Speaking to analysts recently, Herbalife officials said they now sell products in most of China's provinces and major cities. They've also used China to pilot a "preferred customer" program that's attracted more 200,000 members and could go global.

Herbalife currently has two China plants: One in Suzhou, which is near Shanghai and less than three hours from Nanjing, and in the southern city of Changsha. The latter is near farming areas and was called a "global raw materials" supplier for Herbalife by local government officials when company executives formally opened the plant in 2012.

Herbalife has been methodically building a China marketing network since 2005. It's also working with government health agencies on healthy lifestyle campaigns. For example, the company in July opened a public fitness education center in Shanghai. And Herbalife keeps in touch with China's urban middle class via postings on Sina Weibo.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
HLF $57.95 -2.98%
AAPL $93.74 -1.15%
FB $117.58 0.73%
GOOG $693.01 0.29%
TSLA $240.76 -2.81%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs