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Whitney Tilson may be cringing a bit today, as shares of Herbalife (HLF +9%) continue to claw...

  • Monday, December 31, 2012, 12:50 PM ET
    Whitney Tilson may be cringing a bit today, as shares of Herbalife (HLF +9%) continue to claw their way back from last weeks drubbing. The stock is rising again for a fourth session as some big hedge funds take advantage of the opportunity to cover shorts on the weakness created after Pershing Square's Bill Ackman accused the company of being a "sophisticated pyramid scheme." The stock has now risen nearly 30% since hitting a fresh two-year low last Tuesday.
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This news story has 15 comments:

  •  
    whitney tilson: a follower not a leader. yet he loves the fees
    31 Dec 2012, 12:55 PM Reply Like
  •  
    indeed a truly terrible manager
    31 Dec 2012, 12:59 PM Reply Like
  •  
    Whitney Tilson: a self promoting tool. How he gets them in, I will never know. Doesn't make them anything while the market goes up +100%, yet living fat off the fees. Most successful financial failure since subprime went toes up.
    31 Dec 2012, 01:01 PM Reply Like
  •  
    Shorts better hope that the mighty HLF cash flow stops or they are going to get killed on this thing from here. Short it at 60 and it's not so bad. Short it at 30 and you are taking a huge risk. At these levels if the cash flow is real they can buy back a huge piece of the company and increase earnings 30% or more through organic growth plus the decrease in the share count. If something doesn't happen in the next couple of months and shorts get concerned it could easily bounce back to 60 before the end of 2013. At that level it will look like a stock with huge growth and a very very reasonable PE.
    Disclosure: I am long some at around 45; holding and hoping the company bought back a bunch below 30.
    31 Dec 2012, 01:02 PM Reply Like
  •  
    You must be dreaming if you think this stock will ever hit 60 again get out while you can on this rally.
    31 Dec 2012, 04:18 PM Reply Like
  •  
    Cash flow is real and the vast majority of it comes from outside the U.S. How does it not go up if they can buy back so many shares and have organic growth on top of that. You think it will have a PE of 6 in a year?
    1 Jan, 11:20 AM Reply Like
  •  
    How bad does this smell. Clubby little hedge fund boys with access to National media.
    31 Dec 2012, 01:10 PM Reply Like
  •  
    Poor Whitney, the only thing he knows to do is to buy and hold Berkshire - he recently said he was buying more because Warren said he was raising the buy back price - that was the reason - no other.

    And Warren only did that because he did a sweetheart deal with a long time holder who wanted out before the cliff. If it wasn't Warren there would be Congressional committees called and the SEC would be all over it. But then it is...Warren "please raise taxes...I can afford the best accountants on the planet to evade them" Buffett. So nothing to see here...move on.

    As for HLF - I don't know a lot about it but I know that NUS has been hammered and is growing earnings at over 20% per year. It has been a gift to be able to buy it below $35 which I did by the bucket. Thank-you Mr. Ackman.

    As for Whitney...a fool and his money are soon parted...if he has some of yours you need to ask some questions...he really has no clue of his own.

    P
    31 Dec 2012, 01:12 PM Reply Like
  •  
    Ah Whitney Tilson - the ultimate contrarian indicator.
    31 Dec 2012, 02:24 PM Reply Like
  •  
    Poll: Who is less respected in their field?

    (a) Chris Chase
    (b) Whitney Tilson
    (c) Joan Rivers
    31 Dec 2012, 02:28 PM Reply Like
  •  
    Tilson loves to act like he has a clue when he just steals others' ideas (mostly from Ackman).

    The best way to judge his actual talent is to look at his mutual fund (TILFX) where he buys stocks but also has the flexibility to use options and shorting. Morningstar ranked him in the bottom 1% for the past 1 and 3 years and bottom 3% for 5 years.
    31 Dec 2012, 03:56 PM Reply Like
  •  
    Thought Ackman has all the short shares. which is it?

    PS HLF has been as scam from day 1, and will be a scam 20 years from now too.

    Big deal.

    So is everything else.
    31 Dec 2012, 02:38 PM Reply Like
  •  
    The only Whitney I would ever bet on is the G1 Handicap at Saratoga each summer ---

    My favorite winner was Medaglia d'Oro , whom I bred one of my fillies to when he first went to stud , and sold the in-foal mare at the Keeneland Fillies and Mares
    31 Dec 2012, 02:45 PM Reply Like
  •  
    Say hello to Mary Lou for me.
    31 Dec 2012, 08:57 PM Reply Like
  •  
    Told ya before--Herbalife is here for the duration! It is no scam and it will be here 20 years from now---what about the 32 years it already has existed?
    1 Jan, 01:26 AM Reply Like
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