Why the Herbalife Short Was Doomed

Could Herbalife (HLF) sell its product like Tupperware (TUP) does? Could it shift out of the recruit model -- which entails simply trying to pile on hosts -- to a model used to sell new, best-in-class kitchenware that seems to be loved the world over? Could Herbalife become a retailer of product via parties?

On Monday night, as I talked with Rick Goings, the terrific CEO of Tupperware, I was conscious of the differences and similarities between the two companies. First, Tupperware is a great business. Several million women are hosting parties for the product, one every second and a half around the globe, and the products are constrained in supply. Tupperware's offerings are proprietary, and innovation has kept the company ahead of the game. In Turkey, Indonesia, China and Mexico -- wherever emerging markets are -- there are women selling these products to earn a little extra money or just to be the breadwinner....748 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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