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Forbes contributor Igor Greenwald castigates Bill Ackman for shorting Herbalife (HLF -1.4%),...

  • Thursday, December 20, 2012, 9:33 AM ET
    Forbes contributor Igor Greenwald castigates Bill Ackman for shorting Herbalife (HLF -1.4%), accusing him (and David Einhorn) of possible "Look at Me!" self-promotion to "induce a desired result simply by attaching their name to it." Greenwald wants Ackman to "explain how a 'pyramid scheme' lasts 32 years without an army of disabused and dispossessed latecomers ... clamoring for refunds," not to mention HLF's stellar financial performance. (Ackman is giving his reasoning now at the Ira Sohn conference in NYC.)
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This news story has 13 comments:

  •  
    Is Herbalife (http://bit.ly/RGdvEj) a pyramid scheme? We don't know, Amway has managed for quite a while and they seem to be getting by just fine.

    However, is it possible for a pyramid scheme to last 32 years with no dissatisfied participants? Yes, just ask Bernard Made-off.

    HLF going to $34 as suggested on May 3, 2012 (found here: http://seekingalpha.co...).

    Regards.
    20 Dec 2012, 09:39 AM Reply Like
  •  
    There was a court decision in Belgium that went against HLF, they are a pyramid scheme within the meaning of the relevant law. Considerable compare and contrast with Amway in the decision.

    So Ackman has something to hang his hat on.

    Ackman when he is short is very vocal, witness his conduct while short MBIA. I don't like his style but suspect he is within the law on HLF.
    20 Dec 2012, 09:49 AM Reply Like
  •  
    Is Subway, Burger King or KFC a pyramid scheme? They move their product threw a network of indepent owners that move their product to the end consumer. Just like Herbalife. Only to market Herbalife you do not have to pay them a royalty like you do with a franchize.
    20 Dec 2012, 09:58 AM Reply Like
  •  
    You should read the report before saying something IDIOTIC
    20 Dec 2012, 01:14 PM Reply Like
  •  
    Remyngton,

    Under a 100 comments, no vested interest or credibility.

    Regards.
    20 Dec 2012, 01:24 PM Reply Like
  •  
    i believe ackman is pushing his own self interest by publicly announcing his shorts. imo it is manipulation of the market and he should be investigated to determine if valid assumptions. the company i thought just announced an manufacturing plant expansion that would support enough capital and sound financial dollars to continue to grow.
    20 Dec 2012, 10:18 AM Reply Like
  •  
    Becuase having an opinion and voicing it is manipulation. lol.
    20 Dec 2012, 05:15 PM Reply Like
  •  
    I guess Ackman needs to use unethical behavior in bashing HLF to make up for his massive losses on JCP.

    Based on what I heard, there was not a single new charge against HLF that we haven't heard before.
    20 Dec 2012, 11:26 AM Reply Like
  •  
    .

    That makes ... sense... ???

    Maybe you should check out his other positions and his performance before you say something IDIOTIC


    .
    20 Dec 2012, 01:24 PM Reply Like
  •  
    So tell me what new info he came up with.
    20 Dec 2012, 01:31 PM Reply Like
  •  
    Based on our May 3, 2012 downside targets based on the work of Edson Gould (found here: http://seekingalpha.co...), HLF has achieved the $34 level with relative ease. If the stock does not rebound substantially above $34.89 within the next five trading days then it should decline to the support level of $24.33.

    Obviously not guaranteed, however, all indications are that $24 is the next downside target to watch for.

    Regards.
    20 Dec 2012, 02:48 PM Reply Like
  •  
    Excellent target .. saw it trade with a $24-handle for a while before some shorts covered .

    Will be interesting to see how this develops

    Cheers
    28 Dec 2012, 06:18 PM Reply Like
  •  
    Greetings Remyngton,

    Thanks for the comment. On our site we posted an update on our HLF targets (found here: http://bit.ly/ZHISBH), this time with upside targets. We said the following:

    "At the current price of $27.27, HLF has fallen below the ascending extreme downside target of $24.33. This suggests that a $24.33 handle on this stock is almost guaranteed on an intra-day basis, at minimum.

    "After reaching the inevitable low in the current decline, we expect HLF to increase at least +30%."

    We're probably lucky in our analysis, however we're testing Edson Gould's SRLs and have some interesting, albeit lucky, examples of success. We promptly bought HLF on a speculative basis after the stock hit the $24.50 level.

    Now we're REALLY interested in seeing how this develops.

    Regards.
    28 Dec 2012, 08:24 PM Reply Like
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