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Shares of Herbalife (HLF -14.5%) take a hit coming off a trading halt and move toward a fresh...

Shares of Herbalife (HLF -14.5%) take a hit coming off a trading halt and move toward a fresh 52-week low after hedge fund manager Bill Ackman told CNBC that he is "short" the shares, calling the company a "pyramid scheme."
Comments (24)
  • MichaelJ8
    , contributor
    Comments (624) | Send Message
     
    lol. wow.
    19 Dec 2012, 03:02 PM Reply Like
  • wyostocks
    , contributor
    Comments (7710) | Send Message
     
    Let me understand this if I can.

     

    He shorts the stock.
    His comments cause the stock to fall.
    He makes a ton of money.

     

    Gotta love it.
    19 Dec 2012, 03:03 PM Reply Like
  • TFCAB
    , contributor
    Comments (1957) | Send Message
     
    nice racket; wish i could do that
    19 Dec 2012, 03:06 PM Reply Like
  • TFCAB
    , contributor
    Comments (1957) | Send Message
     
    i got hit with the same deal when Chanos said he was short CSTR
    19 Dec 2012, 03:06 PM Reply Like
  • itsAme
    , contributor
    Comments (99) | Send Message
     
    Have to respect a man who puts his money where his mouth is.
    19 Dec 2012, 03:21 PM Reply Like
  • Brendan O'Boyle
    , contributor
    Comments (1048) | Send Message
     
    I think it would be more accurate to say: "he put his mouth where his money already was."
    19 Dec 2012, 11:10 PM Reply Like
  • 1980XLS-2.0
    , contributor
    Comments (525) | Send Message
     
    And,

     

    How much you think Citron made off ISRG today.

     

    Nevermind the "coincidence" of 2 days before options expiration.

     

    No, ISRG does not have weeklies, so they had to wait 'tll the 3rd week of the month.

     

    http://bit.ly/ZRSsko
    20 Dec 2012, 12:02 AM Reply Like
  • luckycharlie
    , contributor
    Comments (228) | Send Message
     
    wouldn't HLF be able to sue the guy for calling it a pyramid scheme?
    I mean it definitely has a negative effect on shareholder value... Unless it actually is a pyramid scheme, of course...
    19 Dec 2012, 03:11 PM Reply Like
  • Ted Bear
    , contributor
    Comments (589) | Send Message
     
    at the end of the day, so what? It doesn't mean the shares will go down...in fact, in the next day or two, they are likely to fly as the retails shorts who got in today get their butts kicked.

     

    I am NOT defending HJLF, but......

     

    There is another company....Amway...shares only listed in Japan.....which has been in the same biz for many years. Looks like a scam/pyramid/whatever, but they continue to exist.

     

    Somehow.

     

    Now, speaking of pyramids.....i give you the US government.....is that any different?
    19 Dec 2012, 03:20 PM Reply Like
  • TwistTie
    , contributor
    Comments (2477) | Send Message
     
    Wooooooooooooow!

     

    I can't wait for the shorts to bail on this one.
    19 Dec 2012, 03:26 PM Reply Like
  • Matt Jonza
    , contributor
    Comments (86) | Send Message
     
    can you saying buying opportunity? unless he disclose something tomorrow that's groundbreaking... the companies business model hasn't changed for 30 years.
    19 Dec 2012, 03:49 PM Reply Like
  • User 6022161
    , contributor
    Comment (1) | Send Message
     
    direct marketing is so passe.
    have confidence in your product to buy shelf space like everyone else
    19 Dec 2012, 04:15 PM Reply Like
  • kmsmithIA
    , contributor
    Comment (1) | Send Message
     
    First Einhorn with HLF comments now Ackman....yea they're making money and manipulating it with reputation but maybe they aren't incorrect with these accusations.
    19 Dec 2012, 04:19 PM Reply Like
  • franklutz
    , contributor
    Comments (4) | Send Message
     
    Yep, you've got the bad guys - Chanos, Einhorn, et al - and the unschooled dopes - Greenberg, et al - who one way or another are going to take advantage of the lack of regulations against shorting and then bad-mouthing and then making a ton of money off the ruined reputation of the stock they just bad-mouthed, with no fear of recrimination. And they suggest that HLF is a "pyramid"? Are you kidding me? Don't they think that after 32 years in business, known and admired for their products all over the world by now, that the SEC or the FTC or the FDA or somebody would have stopped HLF by now? Of course it's not a pyramid! It complies with all local and federal regulations in the USA and abroad - it has to, or HLF would not be able to do business for soon to be 33 years! Duh!
    19 Dec 2012, 04:20 PM Reply Like
  • 1980XLS-2.0
    , contributor
    Comments (525) | Send Message
     
    f. lutz,

     

    Madoff was in business for over 30 years too.

     

    (unless you were being sarcastic)
    20 Dec 2012, 12:02 AM Reply Like
  • Sennin
    , contributor
    Comments (41) | Send Message
     
    I had not read the Bill Ackman comment when I made my own earlier today. I have been following the stocks for some time and in fact I have been very curious as to why the stock has been taking such a plunge ever since the Einhorn comment - now I know: people are getting wise to the inherent long-term flaw in its business model.
    19 Dec 2012, 04:30 PM Reply Like
  • onagoodday
    , contributor
    Comments (3) | Send Message
     
    In business for 30+ years and continues to grow. If it was a pyramid scheme, wouldn't it have collapsed by now?
    19 Dec 2012, 04:30 PM Reply Like
  • itsAme
    , contributor
    Comments (99) | Send Message
     
    - Bernie Madoff
    19 Dec 2012, 04:37 PM Reply Like
  • sid18
    , contributor
    Comments (310) | Send Message
     
    The difference is that Bernie popped right when the government investigated it and HLF continues to thrive despite multiple regulatory probes in the past.

     

    HLF makes and markets products that seem to work. So even if their distribution model doesn't work, they should still be able to stay in business by selling their products via retailers, no?
    19 Dec 2012, 05:58 PM Reply Like
  • jptrad
    , contributor
    Comments (4) | Send Message
     
    Madoff had no tangible product for sale. Herbalife do, don't they??
    19 Dec 2012, 06:32 PM Reply Like
  • russellb73
    , contributor
    Comments (398) | Send Message
     
    Speaking as a user and investor of HLF, it does sell a product that does really work.

     

    I just started using it so only a few pounds off but my wife has literally lost 90 pounds using other products and HLF shakes in 6 months. I know that when my wife's hair started falling out that her health care professional friends (nutritionist, nurses, and doctor) all said to use HLF shakes because they have higher and/or right balance of nutrition your hair won't fall out. She drinks only HLF shakes now. My wife's hair stopped falling out, she feels great, and she is losing a lot of weight still. I strongly recommend you try the cookies in creme shake.

     

    I lost a lot on current position but bought more today. I think stock stays crushed for a few weeks but then rebounds in 6 months. CEO bought a million shares in open market a while back. So to me seems like management thinks they are doing fine. Ackman and shorts better produce some new facts or they better get out before retail gets wise.

     

    see Baron's article today....

     

    http://onforb.es/YmWS2f

     

    Also think some of the shorts should go to jail....

     

    from
    http://yhoo.it/VSy1gC

     

    "
    An extraordinary number of puts on our stock are due to expire this Friday. We previously learned this activity was pegged to some kind of "significant event."
    Mr. Ackman suddenly announced today that he will make a presentation on Herbalife on Thursday, the day before the puts expire.
    Our CFO this morning asked Mr. Ackman to allow us to participate in his presentation. Mr. Ackman declined.
    We have been informed that Mr. Ackman has shorted our stock for the past 7 to 9 months.
    Our stock dropped almost 15 percent today following Mr. Ackman’s announcement."
    19 Dec 2012, 09:34 PM Reply Like
  • russellb73
    , contributor
    Comments (398) | Send Message
     
    I am surprised Mr. Ackman refused to let CFO participate in his presentation. Couldn't be that he didn't want anyone to have answers in hand to refute his allegations....
    19 Dec 2012, 09:37 PM Reply Like
  • franklutz
    , contributor
    Comments (4) | Send Message
     
    Are you outa your mind, Sennin?: "... long-term flaw in its business model." Flaw? With an ever-expanding world-wide population (Herbalife is in 89 countries , I believe, including China); new customers coming of age and emerging into the market each year; new advances in health technology, ergo, new products coming on-line; etc, etc. Not to mention the several other long-term successful American Direct Marketing/ MLM work-at-home companies that have been in business for decades. Flaw? Nope. Sounds pretty smart to me.
    19 Dec 2012, 11:51 PM Reply Like
  • russellb73
    , contributor
    Comments (398) | Send Message
     
    Anyone have Warren Buffets email or number? Someone needs to tell him HLF is on sale. I bet he would agree this is a company to buy and hold for 10 years at this price. Love to see the shorts get squeezed by someone like him.
    20 Dec 2012, 12:03 AM Reply Like
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