NHTC STOCK JOCKING?
15 May 2011 - Editors opinion note: NHTC stock at an impossible $.36 a share. Impossible without published financials! What fools would pay that for this dog stock? What is the manipulation being pulled!
NHTC COMMITTS MLM PAY PLAN SUICIDE?
Income Statement Presentation From Stock Record
Read Distributor Commissions Below And Rod Cook MLM Complan Opinions!
FROM STOCK RECORD 11 Aug 2008 - The Company (Natural Health Trends Corp) derives its revenue from sales of its products, sales of its enrollment packages, and from shipping charges. Substantially all of its product sales are to independent distributors at published wholesale prices. We translate revenue from each market’s local currency into U.S. dollars using average rates of exchange during the period. The following table sets forth revenue by market and product line for the time periods indicated (dollars in thousands).
FROM STOCK RECORD 11 Aug 2008 - Net Sales: Net sales were $12.3 million for the three months ended June 30, 2008 compared to $25.2 million for the three months ended June 30, 2007, a decrease of $12.9 million, or 51%. Hong Kong net sales decreased $8.1 million, or 49%, over the comparable period a year ago. Additionally, net sales for North America and South Korea were down $1.1 million and $2.1 million, respectively, over the comparable prior year period. North American sales were slightly impacted by the launch of retail product selling in Italy during June 2008. Prior to the launch, sales into the European market were fulfilled by our North American subsidiaries. Additionally, net sales in Latin America and Southeast Asia were impacted by our efforts to consolidate those underperforming markets during 2008. Partly offsetting the decrease, net sales in China from our new e-commerce retail platform generated $183,000 during the second quarter of 2008.
Ur WatchDog Editor opinion note: At first I thought this was a result of the bHIP Global expansion but then I dropped my jaw when I read this below.
Distributor Commissions (WatchDog opinion - Cut Commissions Distributors Quit)
Distributor commissions were $4.6 million, or 37.3% of net sales, for the three months ended June 30, 2008, compared with $12.5 million, or 49.6% of net sales, for the three months ended June 30, 2007. Distributor commissions decreased by $7.9 million, or 63.2%, when comparing these periods mainly due to the decrease in product sales, as well as a decrease in the overall commission rate that resulted from the implementation of a significant commission plan change during the end of the second quarter of 2007 and less supplemental commissions paid in Hong Kong and South Korea.
Distributor commissions were $8.6 million, or 36.2% of net sales, for the six months ended June 30, 2008, compared with $22.9 million, or 49.1% of net sales, for the six months ended June 30, 2007. Distributor commissions decreased by $14.3 million, or 62%, when comparing these periods mainly due to the decrease in product sales, as well as a decrease in the overall commission rate that resulted from the implementation of a significant commission plan change during the end of the second quarter of 2007, less supplemental commissions paid in North America, Hong Kong and South Korea, and fewer commissions earned in the newer markets of Japan, Latin America, and Europe.
The result of the commission plan change during the second quarter of 2007 was less than satisfying. While the payout as a percentage of sales was lowered, sales decreased significantly following the effective date of the change. We implemented certain changes to our commission plan in March 2008, primarily in the markets of Hong Kong, the United States, and Taiwan. Additional enhancements were also added at the same time to improve sales momentum. With these commission changes and enhancements, we are targeting a commission payout that will eventually settle around low to mid-40% of net sales.
Rod Cook - Your Editors Very Expert Complan opinion: We are in a period of MLM Complan Hyper Inflation due to the Industry attracting big money. New companies (even nutritional companies) pay out up to 60% because they don't have to cover the cost of building the company. That comes from high levels of investment money into the company before launch. A 50% payout of wholesale payout is becoming the norm. Older MLM Companies in the U.S. are seeing the effect of mid to below 40% payouts. They are losing bodies!
Rod Cook - Your Editors Very Expert MLM Complan opinion: Some of our senior watchdog reporters know that I have a background in accounting. But these commission changes were psychological stupity on the human side. Why? You can trade stimulus of money paid for activity. However MLM Compensation plan changes take 100's of hours of research for the trade. AVOID THE PRIME RULE - NEVER CUT COMMISSIONS!
ROUND 2 bHIP FIRES BACK
bHIP GLOBAL WELCOMES CHALLENGE BY NATURAL HEALTH TRENDS
Editors Note: After this press release NHTC dropped out by not paying their lawyers so the whole NHTC lawsuit was DISMISSED....Went down drain without a whimper!
July 1, 2008 (Dallas, Texas) – On Tuesday, June 24, 2008, bHIP Global, Inc. (“bHIP Global”) received notice that a lawsuit had been filed against it by Natural Health Trends Corp. (“Natural Health Trends”). The lawsuit, filed in Texas state court, claims that the tremendous success enjoyed by bHIP Global since its launch in November 2007 comes as a result of allegedly unfair competition with Natural Health Trends. bHIP Global emphatically denies the claims being made by Natural Health Trends. In fact, bHIP Global’s remarkable growth is directly attributable to the tireless marketing efforts of both the company and its many product promoters. According to Terry LaCore, owner and CEO of bHIP Global, “Notwithstanding this desperate attempt by Natural Health Trends to curtail healthy competition, the success story of bHIP Global will certainly continue long into the future given the company’s solid infrastructure, its exciting new products, and its unique global delivery system. We welcome the opportunity to discredit Natural Health Trends’ unfair attack on our business.”
The issuance of a TRO is not uncommon in Texas state court litigation and can be used as a short term stop-gap measure until a full hearing can be held. Here, the judge entered a much narrower TRO than Natural Health Trends asked for. In fact, the TRO was so narrow that bHIP agreed to its entry until bHIP has the opportunity to present its evidence and challenge Natural Health Trends’ claims (the “Agreed TRO”). There should be no effect on bHIP Global’s current business activities – it remains “business as usual” for both bHIP Global and its product promoters. Natural Health Trends provided notice to bHIP Global only two hours before the TRO hearing. Nevertheless, bHIP Global successfully convinced the judge to deny the broad restrictions proposed by Natural Health Trends and to limit the Agreed TRO to only a few simple guidelines. This success is even more telling since the standard procedure of a TRO hearing prevented bHIP Global from presenting its own evidence to rebut the bare allegations set forth by Natural Health Trends. Because the Agreed TRO lasts only until a more formal hearing can occur, bHIP Global looks forward to the opportunity to completely rebut the allegations made by Natural Health Trends within the next several weeks. bHIP Global will demonstrate to the court that bHIP Global has and will continue to act only according to the highest business standards.
bHIP Global takes the allegations by Natural Health Trends very seriously and plans to vigorously defend its reputation and business practices. In addition, bHIP Global will pursue all legal actions it deems necessary, including the filing of counterclaims against Natural Health Trends, to prevent any further attempts to disrupt its business. bHIP Global is confident that it will prevail in the lawsuit filed by Natural Health Trends and looks forward to a final resolution that clears the path for bHIP Global and its product promoters to continue their worldwide success far into the future.
About bHIP Global, Inc.
bHIP Global, Inc. is a privately held company owned by Terry LaCore, who serves as CEO. bHIP Global has already launched in 13 markets on 4 different continents, and expects to continue its expansion into more than 30 countries during the next 30 months. To learn more about the exciting opportunities available with bHIP Global, Inc., please visit the company’s website at www.bhipglobal.com.
Contact:
Terry LaCore
Owner and CEO
bHIP Global, Inc.
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