real-time news and commentary for investors
Monday, Sep 30
Teflon: Herbalife shrugs off city councilman's FTC letter
- It's almost as if shares of Herbalife (HLF +3.8%) relish any opportunity to rally in the face of negative press.
- The stock is surging on the last day of the quarter, even as a letter from Boston City Councilor Tito Jackson to the FTC surfaces.
- "I urge you to [conduct a] thorough investigation into HLF's sales and marketing practices to ensure my constituents and the residents of Boston are protected,” Jackson says in the letter, after noting that he has received complaints alleging the company preys "on disadvantaged populations ... offering them 'income and hope,’ [and instead delivers] ... 'debt and despair.’"
- Despite the controversy, the stock continues to bedevil shorts and is up nearly 17% in September alone.