Seeking Alpha

Herbalife strong after Ramey note, Villaraigosa hire

  • Shares of Herbalife (HLF) open 1% higher.
  • Likely helping the cause is Tim Ramey's note from Friday which suggests the company could receive $500M to $1B in damages presumably because KPMG effectively delayed a share buyback by leaving HLF "frozen without [an] audit opinion." (See: Previous coverage and full note)
  • Here's ValueWalk's take: "Timothy Ramey, CFA  just cannot get enough of those yummy shakes! [He] seems to find ways to create news even when there is seemingly little (or no) news on the topic."
  • Other company news: HLF has hired former L.A. Mayor Antonio Villaraigosa as a consultant presumably (though not explicitly) to counter accusations (some by Latino civil rights groups) that it preys on the Latin American community which makes up around 60% of its U.S. distributor base. Brent Wilkes, national executive director of the League of United Latin American Citizens, is "disappointed" in Villaraigosa.
  • Also: SA contributors talk bolivars and high growth potential
Comments (2)
  • Zerohedge
    http://bit.ly/17lhF8I
    9 Sep 2013, 02:07 PM Reply Like
  • Herbalife is the best.... my 3 super overweight brother's Mother just joined my fit club and has gotten onto the products..... Why? cause it's working for her sons. So now of course I've signed her up as a distributor so she has to stay with me as my customer and receive a discount. And when she gets to her goal weight she will quit.... But I want all you naysayers to understand she will be the winner. She will not have been scammed. She will have dropped about 80 pounds by then. Please don't misconstrue why she'll quit. If she does decide to distribute, even though I really doubt it, she will be able to come from a position of strength. Why? Cause she'll have just lost 80 pounds. She that gives her the ability to lead. Cause all leaders do successfully first what they want their followers to do...
    10 Sep 2013, 08:57 AM Reply Like
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