Seeking Alpha

Herbalife hits new highs as DA Davidson suggests buyback may be close

  • Herbalife (HLF +3.2%) surges to a fresh 52-week high.
  • The catalyst: Recycled chatter regarding a leveraged share buyback.
  • The call looks to have emanated from a familiar place, as multiple sources are attributing it to DA Davidson's Tim Ramey.
  • Summing up the story: KPMG's "troubles" earlier this year might have delayed an HLF buyback which may now be back on the table once PwC signs-off on the company's financials.
  • Ramey suggested recently that HLF may be due for a settlement for the trouble KPMG caused, while Ackman is of course putting pressure on PwC.
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Comments (12)
  • sciences
    , contributor
    Comments (72) | Send Message
    It's not just 52wk high, it's ALL TIME HIGH !!! And as such it's also likely the beginning of another partial short squeeze all the way to the next high
    17 Sep 2013, 11:40 AM Reply Like
  • mason-b/share
    , contributor
    Comments (4) | Send Message
    anybody have a timeframe for a buyback, near term price target? i just bought in at 73.25
    17 Sep 2013, 12:00 PM Reply Like
  • CrimeBustersNow
    , contributor
    Comments (2603) | Send Message
    "mason-b/share" asks.... "anybody have a timeframe for a buyback, near term price target? i just bought in at 73.25
    And you may become one of the biggest losers. The "high" will not alter the fact Herbalife is a pyramid scheme that should be shut down by authorities; but perhaps too big to prosecute? That's your waning.... take your chances.


    David Thornton


    David Thornotn
    17 Sep 2013, 02:22 PM Reply Like
  • RJBBrk
    , contributor
    Comment (1) | Send Message
    Lesson No. 1: Never buy in at all time high. Always wait for a pullback.
    18 Sep 2013, 12:20 AM Reply Like
  • herbs4mike
    , contributor
    Comments (2085) | Send Message
    Wrong.... you could have bought Telsa when it was 30, now it's 170. The fact is it's breaking out. And most analysts have a target of 92. Furthermore, HLF is scheduled to buy up shares shortly... making pressure to go up, and I BELIEVE most big players know that Icahn hates Ackman and would love to make an offer or orchestrate a dutch tender. Then the price is in the sky....
    18 Sep 2013, 07:28 AM Reply Like
  • Joseph Poma
    , contributor
    Comments (439) | Send Message
    ...yeah, because that's happening now. Seems to be reflecting in the stock price....
    18 Sep 2013, 06:19 PM Reply Like
  • poortorich
    , contributor
    Comments (2277) | Send Message
    Very dangerous time for shorts. The current/next wave of buyers are just joining the party.
    17 Sep 2013, 12:21 PM Reply Like
    , contributor
    Comments (99) | Send Message
    How much does Ackman lose every time it goes up $1.00?
    17 Sep 2013, 12:36 PM Reply Like
  • herbs4mike
    , contributor
    Comments (2085) | Send Message
    Ackman has to be crying himself to sleep everynight... His reputation is in shambles
    17 Sep 2013, 12:58 PM Reply Like
  • Manxbuilder
    , contributor
    Comments (219) | Send Message
    Based on how Ackman went about shorting HLF and his arrogance about it, I'd have to say that he deserves the pain he is getting. He caused enough of it for many of us when he went insane and started this.
    17 Sep 2013, 02:22 PM Reply Like
  • powershake
    , contributor
    Comments (1822) | Send Message
    Ackman is accusing Herbalife of fraud in a reckless bet just to make some money. Ackman, has gone beyond what is known as a “short” bet. He has engaged in “market manipulation” against Herbalife stock price. Example, lobbying congress, lobbying consumer groups, buying google ads to direct traffic to his website, attacking Herbalife after each quarter, writing complaints to the SEC, “warning” PwC (HLF’s aduiting firm) regarding their numbers, etc. The differences between Ackman and other legitimate short sellers is significant.


    The problem with Ackman’s is his approach: he’s trying to burn down the entire forest to get a single tree. He’s wrong. Herbalife is not a pyramid scheme. Plain and simple.
    Comment mostly from - MLM Attorney @
    17 Sep 2013, 03:26 PM Reply Like
  • poortorich
    , contributor
    Comments (2277) | Send Message
    What a man....Bill Stiritz that is. He could not afford to complete his education at University of Arkansas. He is a self made man. A wonderful builder of businesses.


    I love his statement regarding HLF : "Its my money versus his investor's money. May the best analyst win" He did his own DD on his investment in HLF, even becoming a distributor. I doubt he has plans to sell HLF shakes. He probably wants to buy at a discount.


    He says he plans to buy more shares of HLF.

    18 Sep 2013, 02:56 PM Reply Like
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