The Fortune Hi-Tech Lawsuit May Actually Help Herbalife Ltd. (HLF)

But even as the controversy continues, the M-L-M and direct selling industry seems to be going about its business.

Nu Skin Enterprises, Inc. (NYSE:NUS), a M-L-M firm, now projects fourth-quarter revenue of approximately $588 million, representing growth of 19 percent over the prior year. The company also estimates full year revenue growth of more than 24% with sales coming in at $2.17 billion. Earnings growth is anticipated to be approximately 30 percent.

Herbalife said net sales for full-year and fourth quarter 2012 are anticipated to rise about 17.9% and 19.9%, compared to the prior year periods, respectively. Earnings for the fourth quarter are projected to be around $1.02 to $1.05 per share, compared to the prior year $0.86 per share.

Medifast, Inc. (NYSE:MED), another M-L-M company, has just undertaken a nationwide advertising program. This bold action spots TV commercials that will run on networks including A&E, Lifetime and the Food Network. Print ads will also appear in publications including People, Better Homes & Gardens and Cooking Light.

The well-known direct selling firm, Tupperware Brands Corporation (NYSE:TUP), reported fourth quarter 2012 sales up 5% in dollars and up 6% in local currency. The company also said adjusted diluted earnings per share came in at $1.71 for the quarter and was 21 cents, or 14%, better than 2011 in U.S. dollars.

The stocks of M-L-M companies can be very volatile and Herbalife’s situation makes it even more so. But while I believe that there is not sufficient evidence to indicate the company is a pyramid scheme, I would recommend anyone considering investing in the M-L-M space do their own investigation and come up with their own conclusion.

The article The Fortune Hi-Tech Lawsuit May Actually Help Herbalife originally appeared on Fool.com and is written by Bob Chandler.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.