SEC to look at USANA

Posted on 21. Mar, 2007 by Ty Tribble in Network Marketing - MLM

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I'm not suggesting that USANA is 100% in the right here, but someone needs to inquire about the felon (Barry Minkow) who shorted the USANA stock before releasing his "investigation".

Pink Truth web site owner, Tracy Coenen also participated in the "investigation".

The Street:

Usana Health Sciences (USNA - Cramer's Take - Stockpickr - Rating) saw its shares fall a day after it said the Securities and Exchange Commission has opened an informal inquiry in to the company.

The seller of vitamins and supplements has been under fire for several days, and lately its stock was dropping 3.4% to $47.43. Trading volume was more than double the normal level.

The drama began last week when Barry Minkow, who served prison time in the 1990s for stock fraud but who now investigates companies for what he sees as questionable business practices, released a report critical of Usana.

Usana said in a statement Monday that it believes the SEC probe is a result of the assertions that have appeared about it in the media. Minkow has contended that the company's model for selling its products can't last because it requires new associates to constantly be coming on board.