NUS - Natural Health Trends Corp.: Short Opportunity On Imminently Terrible Earnings In A Structurally Declining Industry With Multiple Potential Downward Catalysts

Introduction

Natural Health Trends Corporation (NHTC) is an international direct-selling and e-commerce company whose subsidiaries sell personal care, wellness, and quality of life products under the NHT Global brand. The company is headquartered in Hong Kong (where they moved in January 2019 from California), and 85%+ of their business comes from direct selling products in China. The company drives sales through a multi-level marketing member network, along with operating an e-commerce website for the Chinese market.

In January 2019, the Chinese government implemented a 100-day Campaign to review MLM companies and direct selling