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G. Hudson

 
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  • Herbalife -13% as U.S. senator calls for investigation [View news story]
    I just talked to Justin Slaughter at Edward Markey's office and he admitted to me that Bill Ackman did not meet with Mr. Markey but he did meet with some of Mr. Markey's staffers. Also he said that the New York Times is aware of this. I am not sure if they have reported that but if anyone has a link, please post it here.

    NOW WE KNOW THE REST OF THE STORY- Per my conversation with Justin, I believe Bill Ackman is behind this.
    Jan 23, 2014. 11:34 AM | 16 Likes Like |Link to Comment
  • Is Herbalife A Fraud? That Is The Question [View article]
    Matt's question- "Is Herbalife A Fraud? That Is The Question->I wonder if regulators will agree."

    ANSWER: NO & NO

    POLL-> When do you think Matt will-> 1) cover his short & 2) Stop writing these articles (PICK YOUR DATES EVERYONE)
    Aug 8, 2013. 12:03 PM | 15 Likes Like |Link to Comment
  • U.S. Senator Offers Herbalife Reality Check As Ackman Reloads [View article]
    QUESTIONS FOR MARKEY:

    So why didn't Markey say anything about that meeting with Ackman and his staffers in his letter????

    Who provided him OR HIS STAFFERS with the questions for Herbalife in his letter???


    Comments (253)



    Per New York Times article: http://nyti.ms/1dScLFZ

    "Mr. Ackman met with members of Mr. Markey’s staff last fall, but he has not met with the senator, a spokeswoman for Mr. Markey said."

    MY COMMENT: Last Fall - Hmmmmmmmmmmmmm -> wasn't that just a few months ago???? What a coincidence!!!!! Staffers meet with Ackman-> Staffers ask Ackman type questions of Herbalife-> Hmmmmmmm


    NOTE: These are detailed questions that seem to be those questions that Bill Ackman might request.

    Also in Mr. Markey's letter he references one family that lost $130,000 including their entire 401(K) Soooooooo-> Was the money lost in their 401(K) invested in Herbalife stock???

    Since Mr. Markey is asking for openness, it would be good for him to provide all of his connections, including any political contributions from Ackman too.
    Jan 23, 2014. 12:31 PM | 14 Likes Like |Link to Comment
  • Herbalife LBO Reality Check [View article]
    Matt Stewart & Reality NOT IN SAME UNIVERSE!
    Nov 21, 2013. 10:58 AM | 14 Likes Like |Link to Comment
  • Herbalife: Will Icahn Cash Out Sooner Than Not? [View article]
    The real question is not whether Icahn sells any of his stock but if you will ever see the light that you are wrong about Herbalife. For your sake I hope you have at least covered part of your short position.

    To be honest with you, I haven't read or don't plan to read your article as I have other more important uses for my time. Maybe you need the money from the articles to help offset your loss on your short position.

    Enough already!!!!!
    Sep 19, 2013. 04:10 PM | 14 Likes Like |Link to Comment
  • The Mystery Of Icahn And Herbalife's AGM Delay [View article]
    See below excerpt from my article- “Herbalife Information Disputes Pyramid Allegations”

    Here is a link to my Seeking Alpha article- http://bit.ly/1d5iYx6

    Even though Herbalife didn't immediately have those numbers, I am very impressed with how quickly Herbalife's management acted by engaging Lieberman Worldwide Research, one of the top market research companies in the world, to conduct a survey to help develop a better understanding of Herbalife consumers in the U.S. as well as the actual percentage of sales to non-distributor customers. This decision has already paid huge dividends as documented by these excerpts from "Herbalife's CEO Discusses Q2 2012 Results - Earnings Call Transcript":

    Michael Johnson - Chairman and CEO: "Today, for example, we know that 20% of our U.S. volume is shipped directly from Herbalife to the end consumer who is not a distributor. And 30% to 35% of our volume in the U.S. is sold directly to consumers through nutrition clubs, so over half of our U.S. volume is going to the end consumer through these two business methods. And this doesn't include volume from our traditional person-to-person selling method."

    Michael Johnson - Chairman and CEO: "Over the past several years, a growing portion of our business has been driven by our distributors around the world moving to daily consumption business methods with long-term sustainable customers. We believe that daily consumption business methods now generate approximately 40% of our volume. With more than 36,000 non-residential nutrition clubs operated by our distributors around the world, Herbalife products and distributors are more accessible to more customers than ever before."

    Excerpt from Analyst John San Marco - Janney: "That's helpful. And then in terms of the U.S., what - I want to make sure I got my numbers right. I think Michael said that 30% to 35% of volume in the U.S. is daily consumption and then I think you stuck to the number that was about 40% of global volume is from daily consumption. Why do you think it is that the U.S. under-indexes?"

    Excerpt from Des Walsh, President of Herbalife: "So the answer is, John, because the clubs initially were adopted by our Latino group in the United States, and it was based on the success of the Latino group that then they were adopted within the general market. But that was probably about two years later, and that's why you're seeing that, by comparison, the percentage involved is lower today, but as far as future potential, we're very bullish upon the growth now that's happening in the general market."

    In addition to these direct sales to the end consumer, I believe that Herbalife has misclassified sales made to distributors that are strictly for self consumption and who don't have any down line. These distributors need to be reclassified as preferred customers. If they decide that they like Herbalife products enough to sell them and/or to recruit other distributors, they can easily become distributors by signing up online to become part of the distributor network. I personally have sent some suggestions to Herbalife on how to make this change, and I am confident that Herbalife will be able to make those changes soon.

    My conclusion is that Herbalife is not currently a pyramid or will ever be considered a pyramid here in the U.S. since per my best conservative guess, at least 60% to 75% of U.S. sales is to non-distributor customers. [(30% TO 35% "& growing" are direct sells to customers at clubs) + (20% of U.S. volume is shipped directly to non-distributor customers) + (traditional person-to-person sales to non-distributor customers) + (misclassified sales)]
    Mar 14, 2014. 12:34 PM | 13 Likes Like |Link to Comment
  • Ackman has new questions for Herbalife [View news story]
    I question the sanity of anyone who would go long JC Penney and short Herbalife (LOL)
    Jul 30, 2013. 10:24 AM | 12 Likes Like |Link to Comment
  • Herbalife Throwing Money At Its Problems [View article]
    Eventually Ackman will learn that you can only cry wolf for so long and with no reaction from the more intelligent HLF shareholders, he will have to face the agonizing fact of how he will be able to get out of his short position without breaking the bank.

    I noticed that Ackman is trying his usual ploy- after HLF good news - shorting more shares of HLF stock in order to control the upward momentum of HLF's share price. Here is the latest HLF short interest chart which shows that someone (my guess Ackman) has added approximately 2.7 MILLION shorts to their position-

    Settlement Date;Short Interest;Avg Daily Share Volume;Days To Cover

    2/14/2014 22,638,526 3,577,909 6.327306
    1/31/2014 20,511,785 6,264,290 3.274399
    1/15/2014 20,223,267 3,128,333 6.464551
    12/31/2013 19,942,956 3,308,950 6.026974

    This strategy will backfire too and will eventually lead to even more problems for Ackman and his investors. (NOTE: Actually it will be his investors who suffer from Ackman's obsession with Herbalife. Talk about someone using their emotions for their trading strategy.)
    Feb 28, 2014. 11:50 AM | 11 Likes Like |Link to Comment
  • Through The Herbalife Looking Glass [View article]
    So you don't lose more money, you need to go back and read some of my old Seeking Alpha articles- http://seekingalpha.co...

    I could have saved you a lot of money and by the way- please thank Ackman for all the donations to my brokerage account
    Nov 15, 2013. 12:41 PM | 11 Likes Like |Link to Comment
  • Through The Herbalife Looking Glass [View article]
    Sorry about losing money on your short position-

    " I closed my short on Herbalife a week or so ago for funding allocation reasons, and am waiting for a point to re-enter short - which I could do as soon as Monday."

    So if you are planning to go short on Monday, why do you write a negative article today when HLF is soaring and obviously as a short it's supposedly better to short at as high of a share price as possible so you can MAKE MORE MONEY??????- makes me wonder if you might have an affiliation with some other person who is short the stock and are just trying to help them out.
    Nov 15, 2013. 12:37 PM | 11 Likes Like |Link to Comment
  • Noose Starts To Tighten Around Herbalife's Neck [View article]
    Didn't take the time to read & double yahn
    Oct 18, 2013. 11:46 AM | 11 Likes Like |Link to Comment
  • Could Herbalife Wind Up As A Total Loss? [View article]
    Quoth,

    You picked the wrong ACKMAN investment idea-> it's JC Penney that's going to ZERO. Give him credit for that one. Herbalife is on its way to $100. (I believe Ackman is using this time to cover -> QUESTION: How long has it been since we actually have a quote from Ackman or a spokes person for his company provided directly to a news source about Herbalife?

    NOTE: All recent stories are attributed to investors in Ackman's funds or from an investor letter that supposedly isn't for public distribution but reporters always pick it up. However a lot of them are just reporters (who knows their connection to Ackman) conjecturing and then saying- Ackman's company didn't respond to their inquiry)
    Jan 21, 2014. 09:16 AM | 10 Likes Like |Link to Comment
  • Herbalife says no "material changes" after PwC completes re-audit [View news story]
    Don't worry shorts-> Matt & Quoth will explain why this isn't important
    Dec 16, 2013. 03:49 PM | 10 Likes Like |Link to Comment
  • Might Other Companies Be Liable If Herbalife Is A Pyramid? [View article]
    A couple excerpts from your article-

    " I have formed the legal opinion that ***there is evidence to suggest***"

    "Despite this strong evidence that Herbalife ***may be*** an illegal pyramid scheme"

    Daniel,

    My question to you is-

    Are you as an attorney giving your legal opinion to everyone reading this article, which you are being paid for, that Herbalife is definitely an illegal pyramid scheme?

    Just asking because the use of the words- ***there is evidence to suggest*** and ***may be*** in the above sentences seems like an attorney hedge. Please clarify your legal opinion using definite terms as to whether it is your legal opinion that Herbalife is an illegal pyramid scheme.
    Feb 5, 2013. 03:21 PM | 10 Likes Like |Link to Comment
  • Herbalife Throwing Money At Its Problems [View article]
    WHAT WE HAVE LEARNED TO EXPECT FROM ACKMAN- As each month comes to an end, Ackman has consistently released some type of information to try to depress Herbalife's share price so that he doesn't have to report as big of a loss on his Herbalife short. Anyone can go back thru the history of this beginning with his initial presentation and see that a lot of his releases are timed to help his fund report better financial results.

    If Ackman was serious about his accusations concerning Herbalife, he wouldn't be timing his releases but would present his findings as he discovered them. This is not about helping any of Herbalife's distributors, it's all about $$$$'s for Ackman's investors.
    Feb 28, 2014. 12:40 PM | 9 Likes Like |Link to Comment
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