DALLAS, Oct. 15, 2013 /PRNewswire/ -- CVSL Inc. [stock symbol: CVSL] and its chairman, John Rochon, were recently featured in an article in the online investment publication Seeking Alpha.
Following are excerpts from the article, entitled: Are Herbalife Whale Watchers Watching The Wrong Whale? by John Gilliam:
"One of the biggest winners will likely be the whale who took early profits from the Herbalife short squeeze, but appears to have 'doubled down' on the MLM short squeeze strategy in a move so deft and strategically fruitful that other investors should give strong consideration to watching what he is doing and how he plays the game going forward.
"I believe it is fair to say that John Rochon is a whale by most measures and he is best known for engineering historic and profitable deals…in the MLM space -- the LBO of direct selling pioneer Mary Kay Cosmetics that made everyone involved wealthy or a lot wealthier. His Private Equity shop Richmont Holdings has acquired very large stakes in Avon and made bids to acquire the entire company more than once. One of his current ventures, CVSL…is a company built from the ground up for the purpose of consolidating the most attractive segments of the MLM/direct selling space.
"Because Blyth has a public float of only 6.5 m shares, CVSL can command a very important status by acquiring a relatively small stake and in the process, gain tremendous exposure for CVSL among investors and potential acquisition candidates.
"With only 600,000 shares in the BTH float that have not already been sold short, CVSL essentially has the BTH short sellers cornered, as they will likely have to purchase over 5.8 million shares of a relatively thin trading stock to cover their bets in the near future. Any significant catalyst would likely catapult BTH shares higher, bringing more attention to the situation and greater exposure for CVSL.
Even without a company or industry specific catalyst, the freakishly high short to float ratio and resulting lack of shares available to be borrowed for a short sale could cause the shares to move materially higher on any uptick in buying interest, causing the CVSL/BTH story to develop into a story that is more interesting and profitable for whale watchers than the Herbalife trade."
About CVSL (www.cvsl.us.com)
CVSL Inc. is an innovative public company pursuing a strategy of gathering together multiple companies in the direct selling, or micro-enterprise, sector. Each company maintains its own separate brand identity, leadership and product line, while achieving efficiencies through sharing of back office resources and best practices.
SOURCE CVSL Inc.