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Open Letter to CVSL’s Sales Reps & Employees

Dear Longaberger, Agel, Kleeneze, YIAH, My Secret Kitchen, Tomboy Tools, Project Home, Uppercase Living and Paperly sales reps and employees:

As the heart and soul of CVSL and the key determinants of the success of CVSL going forward, we want to share some information that we think you should know. CVSL stock is trading at a level too low to be sustainable given what is going on with the company’s operations. We think it unlikely that CVSL will trade below $2 for much longer, thus we think a short-term gain of 25% from current levels (closed 8/18/15 at $1.60) is not only possible, but highly likely. But that is just the tip of the iceberg, because we feel that CVSL’s Q2 report addressed the previously unanswered questions about this company and management team, such that the stock should begin moving back towards the $3+ level where the traded before it cratered due to those concerns. In short, whihat CVSL management is working to get all CVSL sales reps and employees the opportunity to own shares of CVSL, we think all would do well to go ahead and buy CVSL shares while they are trading at such a ridiculously low price.

Warren Buffett once said of the stock market – “In the short-term, the market is a popularity contest. In the long-term, the market is a weighing machine.” CVSL was very unpopular with investors and traders over the last six months due to a confluence of factors amounting to a perfect storm that knocked the stock down to levels usually reserved for companies that are failing. This happened simply because some in the investment community believed CVSL was failing in the months just before and after CVSL’s first quarter report. The Q2 report from discussed on Friday’s call shows a company that has recovered nicely from a very difficult period where the company had to deal with multiple issues in its largest divisions and one that is now showing significant momentum. But the “weighing machine” of the stock market has not yet begun to reflect what CVSL accomplished in Q2 yet. Due to the lack of Wall Street analyst coverage and the newness of the company’s listing on the NYSE Mkt (less than one year), we have the opportunity to buy shares before they move up to levels associated with a healthy growing company. We believe those who buy the stock before its price reflects what is happening in Q3 (likely only sales reps and the handful of investors who listened to Friday’s conference call are aware of how well Q3 is going) stand to earn an easy double-digit return over the next few months in addition to what will likely be exponential returns over the next few years. We would love to see as many members of CVSL’s sales force as possible get the benefit of owning shares at these low levels.

We were struck by CVSL’s earnings report and not just by the operations results that blew away even the most rosy of estimates, but how this management team truly “gets it” in terms of what will make this company great. A key quote by Mr. Rochon was “We realize that our true ‘product’ is economic opportunity for the men and women in our independent sales forces”. He also indicated on the conference call that he was working with the Board of directors to put programs in place that will make it easier for more sales reps and employees of CVSL to buy stock so they can own part of the company they are helping to build. We think its great if they can get stock at $3 that goes to $10, $15 or $20. But we would like it even better if the reps could get stock NOW while it is still trading below $2 per share. It is for this reason that we penned this letter – we want sales reps to get the opportunity to get in at these prices. If you are a sales rep or employee at Longaberger, Agel, Kleeneze, Your Inspiration at Home, Tomboy Tools, My Secret Kitchen, Project Home, Uppercase Living, Paperly, etc. we are glad that this letter found its way to you and we hope that you will take advantage of this opportunity and pass it along to others who may not have seen it yet.

We have pressed Mr. Rochon to get these programs in place as soon as possible because CVSL stock is trading way below where it should be trading based on its assets and operating results. We believe this stock will trade 50-100% higher over the next 12 months with the potential for much larger gains if the company continues to execute in future months like it has the last three. We believe there is tremendous value to the company and its shareholders if we can get as many of CVSL’s top producers to buy the stock while its uber cheap and get the benefit of the run from current levels up to the $3’s. And to be clear, we believe it will go much higher than $3 over the next few years, maybe a multiple of that. But that will be driven by operating results as the company’s model is proven to be increasingly successful again and again each quarter and it pushes the stock higher. The move up from the current $1.60 is what we would call easy money – the move up from current levels back to the $3+ range is just a “reversion” to the range that might usually be expected for a company in CVSL’s position. We believe that could happen in a fairly short time frame and we would like to see as many CVSL reps as possible get the benefit of that.

So the bottom line is this – there is a very real opportunity to build wealth through CVSL beyond the cash flow you can generate by selling CVSL company products and services. Consider buying shares of the company you are building through your sales efforts. We believe those who buy CVSL stock at its current levels will get a pretty quick taste of the long-term wealth building opportunity when they earn 50% or better returns on their money in a very short time frame (less than a year), to be followed by exponential returns for those who can be patient and hold the stock for a few years. I can’t guarantee you that you wille 10x your money by buying CVSL stock today, but I honestly think you will make at least some multiple of your money if you buy at today’s prices and if CVSL management and its sales force executes going forward like they have over the last 100 days, you could see that $1.60 invested today could turn into  $5, $10 or more.