Herbalife Responds to Stock Drop Today
LOS ANGELES--(BUSINESS WIRE)-- Herbalife Ltd. (HLF): Today, on Herbalife's earnings call the company announced record results -- its best quarter financial results in 32 years.
The fact that recognized short seller David Einhorn asked questions on the call put pressure on Herbalife's stock price.
To be clear: Mr. Einhorn's questions raised no new subjects or concerns. They were elementary questions usually asked by investors new to our industry. These are issues that have been thoroughly addressed before. Analysts and investors can review the specific answers to his questions on our website later today at www.herbalife.com.
Our business fundamentals are very strong and we are confident in our financials, our disclosures, and our network marketing business method.
We believe the drop in Herbalifes stock price today is a buying opportunity given the strong business fundamentals and our outlook for ongoing success. We currently have $428 million in repurchase authorization.
About Herbalife Ltd.
Herbalife Ltd . (NYSE:HLF) is a global nutrition company that sells weight-management, nutrition, and personal care products intended to support a healthy lifestyle. Herbalife products are sold in 81 countries through a network of independent distributors. The company supports the Herbalife Family Foundation and its Casa Herbalife program to help bring good nutrition to children. Herbalife's website contains information about Herbalife, including financial and other information for investors at http://ir.Herbalife.com. The company encourages investors to visit its website from time to time, as information is updated and new information is posted.
Herbalife Ltd.
Media Contact:
Barbara
Henderson
SVP, Worldwide Corp. Comm.
213-745-0517
or
Investor
Contact:
Amy Greene
VP, Investor Relations
213-745-0474
Source: Herbalife Ltd.
Copyright Business Wire 2012
I don't have much appreciation for these guys. In a 0 sum game they are ripping off the private investors who panic.
I hope there is a probe if this guy had any position on this stock, and that some troll will pick up the opportunity to sue his a$$
Here is the silly minimal version of the trade:
hlf announces earnings, stock doesn’t move much. There’s aN EARNINGS CALL at 11am. You short the stock. You get on the call. You ask questions like “why are you no longer disclosing what you used to disclose?” The company answers “because it’s not helpful.” You’re all “thanks.” You hang up. The stock drops 20%. The company announces it’s a buying opportunity and they have a $428mm share repurchase authorization. You … go sell back to them the next morning. 24 hours, 20% profit.
There are obviously some necessary conditions here. The tone of your voice in asking those questions is crucial. It sure helps if the company is … umm … let’s say, a network marketer of weight loss pills. It is critical that you be a famous short seller with a good track record of getting short calls correct.
FEAR AND GREED, it never fails.