Shares of Natural Health Trends Corp. (NASDAQ:NHTC) are trading significantly lower this morning after the company announced estimated 2015 revenue and went on record as saying that they are unaware of any government fraud investigations into their operations.
Natural Health Trends Corp. (NASDAQ:NHTC) estimates that total revenue for the quarter ending December 31, 2015 is approximately $73.6 million, representing a 108% increase over the fourth quarter of 2014. The real surprise came when Natural Health Trends Corp. (NASDAQ:NHTC) put out a statement claiming that the alleged fraud investigation against the company that Chinese and American media outlets had announced last week, is incorrect.
“On January 7, we became aware of an online posting alleging a government investigation of our business in China. By January 11, our Chinese employees were in direct contact with the Beijing City’s government officials, stated the company. “As of now, we are unaware of an investigation. We have initiated the process set forth in China’s pertinent law to contact the website where the allegation was posted. We will appropriately disclose any material, verified information.”
The stock is down 19.31% or $4 following the news, hitting $16.7 per share. About 938,248 shares traded hands or 51.50% up from the average. NHTC has declined 37.22% since June 8, 2015 and is downtrending. It has underperformed the S&P500 by 29.73%.
Natural Health Trends Corp. is a direct-selling and e-commerce company. The company has a market cap of $204.38 million. The Firm offers a line of NHT Global branded products, including wellness, skincare and lifestyle. It has 5.3 P/E ratio. The Firm sells its products to a network of clients or business builders that either uses the products themselves or resells them to consumers.