The Usana earnings call: Things just don’t add up
Zac Bissonnette over at BloggingStocks has another great post about Usana Health Sciences. He listened to the earnings call on Wednesday, and seems to be just as surpised as I was.
Surprised? Yes. Surpised that the executives (Dave Wentz and Gil Fuller) would go so far as to make certain apparent misrepresentations about the [tag]Usana[/tag] distributors.
Zac has some questions about this “only 12% of distributors really want to make money” statement by Gil Fuller. Zac wonders how the huge attrition rates in the first year (at least 75% quit in the first year… maybe up to 90%) tie into the figure. If so many are in Usana just for the vitamins, why are they quitting so fast? Or is the 12% figure a total [tag]fraud[/tag], aimed at getting rid of the questions?
I think the Usana executives are foolishly grasping at straws here. Instead of being upfront about the real numbers and explaining why almost no one makes money in Usana… they’ve been busy relying on the “he’s a felon” defense.
Nice [tag]detective[/tag] work. Guess what guys? We already knew Barry Minkow was a felon, and that didn’t stop him from investigating a whole bunch of companies and receiving a commendation letter from the FBI.
So what’s the plan now? More diversion, it seems. And they’ve been getting away with it. None of the Wall Street Analysts seems capable of asking Usana a hard question. Why is that? For them, Usana’s diversion is working. For the rest of the world, we’ll just have to wait and see. I predict more trouble for Usana soon.
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