Year-to-date gains: 135%
Float Short (as of 7/31): 3.7%
Like Herbalife, Nu Skin (NUS) is a multilevel marketer of nutritional and personal care products. Also like Herbalife, Nu Skin is under fire for its business practices and product claims.
This is an even bigger problem considering the company already has a reputation for being kind of sleazy … and if a couple of ex-husbands of the company’s co-founder are going public with all sorts of dirty and scandalous stories.
Too bad the trade has been such bad news for the bears. Nu Skin’s 135% year-to-date gain has already squeezed most of the shorts out. At the end of July, 1.9 million shares were short, or 3.7% of the float. At the start of 2013, more than 9 million shares were sold short.
Don’t be surprised if the other shorted stocks in this group follow Nu Skin’s lead. After all, even bears know when to quit.
As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.