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Matt Stewart

 
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  • Ackman's Pictures Tell The Story: Herbalife Oversaturates [View article]
    right...now imagine everyone on your street telling the same story...absurd...
    Nov 26 10:51 AM | 2 Likes Like |Link to Comment
  • Ackman's Pictures Tell The Story: Herbalife Oversaturates [View article]
    sanity in action...nice post
    Nov 26 10:49 AM | 1 Like Like |Link to Comment
  • Ackman's Pictures Tell The Story: Herbalife Oversaturates [View article]
    Politics Yteeld...simple politics
    Nov 26 10:48 AM | Likes Like |Link to Comment
  • Ackman's Pictures Tell The Story: Herbalife Oversaturates [View article]
    Steve, You are entitled to your point of view but your prognostications are just that...forecasts unsupported by evidence...

    It is certainly possible that Herbalife will skate through the SEC investigation relatively unscathed. Alternatively, it could find its assets seized and its operations frozen by a court order...we will have to wait and see...

    Investors/speculators have to decide for themselves the answers to a number of questions:

    1) Is the company's Marketing Plan a pyramid scheme or not?
    2) If it is a Pyramid scheme are the regulators likely to intervene or not?

    My understanding of the way law enforcement works is as follows...

    If somebody reports a crime to the police then the police have a duty to investigate. If the investigation yields evidence of wrongdoing then arrests are made and criminal charges are pursued...

    In the case of Herbalife we have:
    -evidence that an allegation has been made and reported to authorities by a multitude of agencies, interested parties
    -evidence that the SEC is investigating
    -no evidence that any such investigation is complete

    I submit to you that the wheels of justice care very little for the interests of Wall St. nor you nor I...but...that honest and capable regulators care about the law...

    every piece of data I have examined leads me to conclude that Herbalife breaks the law...and they do so in a number of ways...at both the state and federal levels...

    finally...i don;t think the police have a pattern of coming to criminals to negotiate a modification of behavior...we arrest drug dealers...we don't ask them politely to stop selling drugs...

    if Herbalife is operating outside of the boundaries of the law then one should expect them to be arrested...

    Through my lense it is as simple as that...

    If I am wrong about the pyramid scheme allegation I lose...but...I don't think I am wrong and so that is my thesis...you are free to disagree...

    Nov 26 09:04 AM | 2 Likes Like |Link to Comment
  • Ackman's Pictures Tell The Story: Herbalife Oversaturates [View article]
    David, You strike me as somebody who hasn't studied any of the counter-arguments to your assertions nor the case law. I am familiar with all of the nonsense you have articulated above. regrettably for you, the court system does not agree.

    1) Sales to distributors for personal consumption do not equal "retail sales" from the Koscot case...
    2) Commssions paid upon wholesale buys v. retail sales = recruiting rewards
    3) Herbalife collects sales tax and remits to state authorities on wholesale purchases so your sales tax position is moot...
    4) Your statement that the whole MLM model is above board is unsupported by the facts...there are numerous examples of companies who claimed to be MLMs only to end-up prosecuted as pyramid schemes
    5) your position that Herbalife doesn't compensate distributors for recruiting is absurd...if the incentive plan didn't pay for recruiting why would anyone bother to recruit?

    The only point you have made that seems to make any sense to me at all is the point where you admitted that sales outside of the MLM/pyramid network are de minimus...

    Otherwise...welcome to the board...
    Nov 26 08:53 AM | Likes Like |Link to Comment
  • Ackman's Pictures Tell The Story: Herbalife Oversaturates [View article]
    fraud
    Nov 25 01:15 PM | 1 Like Like |Link to Comment
  • Ackman's Pictures Tell The Story: Herbalife Oversaturates [View article]
    Hudget....you are asking Herbalife to prove that God exists...this strikes me as an unlikely outcome...:)

    I agree with your logic 100% and the answer is: "of course Herbalife distributors lie to their recruits about the business opportunity..."

    Herbalife seemingly has no interest in vindicating itself...rather...they are tempting regulators to intervene while remaining opaque...what can you do?
    Nov 25 01:14 PM | 4 Likes Like |Link to Comment
  • Ackman's Pictures Tell The Story: Herbalife Oversaturates [View article]
    Herbalifers are always recruiting Mikey J...ad nauseum...because that is what the incentive plan encourages them to focus on...recruitment...
    Nov 25 09:25 AM | 6 Likes Like |Link to Comment
  • Ackman's Pictures Tell The Story: Herbalife Oversaturates [View article]
    "Those who do the work get the pay"....really? Or is it more accurate to state that those who were lucky enough to get in early get the pay...

    Or...those who can find more lemmings to deceive get the pay...
    Nov 25 09:23 AM | 3 Likes Like |Link to Comment
  • Ackman's Pictures Tell The Story: Herbalife Oversaturates [View article]
    for all of the talk of the wisdom of Bill Stiritz...he strikes me as somewhat reckless...even Icahna nd Ackman have limited their positinsi n Herbalife to 5% of capital...same goes for me...this guy has risked a huge percent of his personal net worth on this idea...risking something you have and need for something you don't have and don't need is bizarre behavior...even if there is a 10% chance the SEC shuts these guys dwon...Stirtiz loses 100% of his investment...

    not so wise at all...
    Nov 25 09:21 AM | 2 Likes Like |Link to Comment
  • Ackman's Pictures Tell The Story: Herbalife Oversaturates [View article]
    Low barriers to entry favor the company not downline distributors...
    Nov 25 09:19 AM | Likes Like |Link to Comment
  • Ackman's Pictures Tell The Story: Herbalife Oversaturates [View article]
    in the short run the market is a voting machine...in the long run it is a weighing machine...
    Nov 25 09:18 AM | 7 Likes Like |Link to Comment
  • Ackman's Pictures Tell The Story: Herbalife Oversaturates [View article]
    Educate me sir...how does MLM "work"?
    Nov 25 09:17 AM | 1 Like Like |Link to Comment
  • Using An Herbalife Lens To Examine Avon [View article]
    Robert,

    Presumably the allure of start-up MLMs is the ability for distributors to get in higher-up the pyramid...late life-cycle MLMs probably see attrition/failure not only in the junior ranks but perhaps, too, up the line....

    Hopefully your analysis will lead the FTC to act sooner than not to regulate this industry...
    Nov 25 08:30 AM | 2 Likes Like |Link to Comment
  • Herbalife +4.7% as Stiritz boosts stake [View news story]
    On 10 September 2007, Lewis paid US$860.4 million in an all-cash purchase of a 7% stake in Bear Stearns.[10] By December 2007 Lewis had raised his stake at the brokerage firm to 9.4%, a total of 11 million shares, for which he paid an average price of $107 apiece.[11] After the purchase of Bear Stearns by JP Morgan for $10 a share, it was estimated that Lewis lost $1.16 billion on his investment.[3][12][13]
    Nov 20 01:12 PM | 4 Likes Like |Link to Comment
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