Saturday, March 15, 2008

Direct Selling Stocks

Direct selling stocks, which are also known as multilevel marketing stocks and network marketing stocks, can be considered to be recession proof, because people turn to ways of generating extra income when times get tough. Direct selling companies operate by recruiting salespeople to sell their products. The salespeople receive additional commissions from the sales of people recruited in their downline.

Here is a list of some of the major publicly traded direct selling stocks.

Tupperware Brands Corporation (TUP) is an Orlando, Florida based company which markets kitchen products, cosmetics and personal care products. Their P/E is 19, and their PEG is 0.82. They offer a yield of 2.4%.

Herbalife Ltd. (HLF) is a Los Angeles based company which markets weight management, nutritional supplement, and personal care products in over 60 countries around the world, through their sales reps. Their price earnings ratio is 18, their PEG ratio is 1.18, and they pay a yield of 1.7%.

Avon Products Inc. (AVP) is a New York based company which markets cosmetics, fragrances, skin care, and toiletry products, along with various other consumer products. Their P/E is 31, a PEG of 1.51, and the company pays a yield of 2.1%.

Pre-Paid Legal Services Inc. (PPD) is an Oklahoma company which markets legal expense plan memberships throughout the United States and Canada. Their P/E is 12.

Nu Skin Enterprises Inc. (NUS) is a Provo, Utah based company which markets personal care products and nutritional supplements. They have a P/E of 27, a PEG of 1.23, and a yield of 2.4%.

USANA Health Sciences Inc. (USNA) is a Salt Lake City based company which markets vitamins, minerals, skin products and personal care products. They have a P/E of 11, and a PEG of 0.55.

Mannatech Inc. (MTEX) is a Texas based company which markets nutritional supplements, skin care products, and weight-management products. The company's P/E is 12, with a fairly high yield of 4.2%.

Nature's Sunshine Products Inc. (NATR.PK), which trades on the Pink Sheets, is a distributor of nutritional, herbal and personal care products. The stock has a P/E of 8.

Author does not own any of the above.

By Fred Fuld at Stockerblog.com

1 comment:

Unknown said...

Great post. Very informative.

NTY is one other that could be added to list too.