Savvy Trades and Investments

[SSKILLZ1]

HLF

HLF ($6.46) I brought HLF yesterday at $6.93, a rotten entry point I admit it. Not that I love the type of business, but I do think the stock is waaaaaaaaaaaaaaay too cheap, and believe the turnaround is really starting to take hold.

1) HLF is really cutting cost successfully and that has helped and should continue to help the bottom line.

2) HLF I expect earnings north of $2.00 next year and expect the comps possibly as early as q4 but most likely next year to start showing positive eps comps. I expect this stock never to get a high pe, but a 5-7 pe when possibly comps turn postive seems likely. Hence I could see a $10 stock conservatively, maybe more over the next year.

3) HLF negative is they have a decent amount of debt to say the least. Although the positive is they plan on paying a bunch off over the coming years with earnings and cash flow they hope to generate from the business.

Conclusion: I plan to keep this position small, because of the business model, and the balance sheet isn't the best. Having said that sub $7 I do find it very attractive here for a good chance at a very nice return over the next year. Time will tell. All is just my opinion, and I could always be wrong though.