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I spent my professional life – more than 45 years – working for and with large well-known investment management and investment banking firms. I’ve served at various times as an analyst, portfolio manager, senior investment executive, senior business executive and corporate director. On the buy... More
  • HERBALIFE Response To QTR's Article: "Herbalife And The Only 2 Questions That Matter" 0 comments
    Apr 24, 2014 10:34 AM | about stocks: HLF

    HERBALIFE

    Response to QTR's article:

    "Herbalife And The Only 2 Questions That Matter"

    I am delighted with QTR's current article!

    "Instead, they're offering up anything and everything, in a "throw everything but the kitchen sink" style defense that doesn't matter."

    That's a hilarious statement! Didn't he mean to say: "Ever since December 2012, Ackman/Pershing Square, QTR and MS have been offering up anything and everything, an a "throw everything but the kitchen sink" style of offense that doesn't matter?"

    For more than a year, QTR and MS have seized upon every tiny real or imagined aspect of HLF's business as if it were the single Achilles Heel that would drive the stock down to zero.

    Do you remember Casablanca? Captain Renault marches into Rick's Cafe and the dialogue is:

    [Renault walks into the middle of the room and blows his whistle.]

    Renault: Everybody is to leave here immediately! This cafe is closed until further notice. Clear the room, at once!
    Rick: How can you close me up? On what grounds?
    Renault: I'm shocked, shocked to find that gambling is going on in here!
    Employee of Rick's: [hands Renault money] Your winnings, sir.
    Renault: Oh, thank you, very much. Everybody out at once!

    Of all the ridiculous accusations -- all of which intended to "prove" either HLF's business was about to collapse or it was definitely a pyramid scheme -- my choice for "most ridiculous of all" was the QTR/MS assertion -- parroting what A/PS has said earlier, that "shockingly high" shipping charges were going to cause a distributor revolt which in turn would drive the business into the ground which in turn would drive the stock to zero.

    In this current QTR article, I finally find myself in agreement with QTR! FINALLY, after a year and a half, he FINALLY writes a reasonable HEADLINE: "...

    "Herbalife And The Only 2 Questions That Matter"

    And the questions are:

    1. How much product is sold outside the network?

    2. Why would I sign up for a distributorship for a discount on product, when I can buy it from eBay at a massive discount, right now?

    Yes! Yes!

    Now, QTR and MS, lets forget the other drivel you write about and concentrate your articles on the answers to those two questions!!! You'll save us all a lot of time and you'll save internet bandwidth we could all use more productively, like watching streaming video. Of course, if you write less about HBL, you'll get a little less SA compensation because you'll have fewer page reads. But it will do our community a lot of good and save us all some time so we can focus more on the important stuff.

    Disclosure: I am long HLF.

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