Natural Health Trends Corp. (NHTC) Reportedly Being Investigate for Fraud

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Today it is being reported in China that Natural Health Trends Corp. (NASDAQ:NHTC) is the subject of a fraud investigation by Chinese authorities. Reports coming from the Chinese newspaper, Toutiao, indicate that Natural Health Trends Corp. (NASDAQ:NHTC) may be operated like a pyramid scheme. Although details on the allegations are limited due to translation, it appears that authorities accuse the company of operating a multi-level marketing scheme which may in fact be fraudulent.

At the same time insiders have been selling shares, and the stock is down over 50% from its November highs. Trading today for shares of Natural Health Trends Corp. (NASDAQ:NHTC) has been quite volatile as the stock plunged all the way to $22.06 before bouncing back a bit. The stock has fallen 12.16% or $3.53 following this negative news, hitting $25.5 per share. About 2.22M shares traded hands or 458.68% up from the average. NHTC has declined 15.78% since June 3, 2015 and is downtrending. It has underperformed the S&P500 by 11.09%.

Natural Health Trends Corp. is a direct-selling and e-commerce company. The company has a market cap of $337.57 million. The Firm offers a line of NHT Global branded products, including wellness, skincare and lifestyle. It has 8.1 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.

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