Some burned and some thick and some nu ...

Gator's Chart of the Day: NUS

Somebody call Herb Greenberg and give him this website's address.  I'm sure he would want to chime in on this one.  Here's my take on Nu Skin Enterprises Inc.

It's not a scam.  They have products (quality ones from what I here from friends and relatives) and incredible margins with $385M in cash on the balance sheet.  That's 6.44/share and the forward P/E is under 12 with a PEG under 1.  The stock got whacked (I think bushwhacked) and it fell down to solid support at 40.  It was up Tuesday on heavier than average volume while the rest of the market was having a red candle day.

The Trade
It's buyable under 43 with a stop just under 40 so the risk is well under 8%.  I think it can trade back to the 200 day simple moving average (about 49 when it gets there) with a pause as it encounters the 50 day along the way.  My minimum target is 50 so it should give about 19%+ upside.  If you have some patience I think you can get your entry around 41.50 and that would be really nice with a tight stop.