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Herbalife (HLF -11.9%) CEO Michael Johnson responds to Bill Ackman's accusation that the company...

Herbalife (HLF -11.9%) CEO Michael Johnson responds to Bill Ackman's accusation that the company is a 'pyramid scheme' countering that Ackman is improperly trying to manipulate Herbalife's stock and the SEC should take action. Johnson says company is a legitimate business with "millions of customers" and real business model. Ackman's short is about his own business model, not about HLF's. (video)
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Comments (16)
  • Drew Robertson
    , contributor
    Comments (330) | Send Message
     
    I have noticed a high correlation between CEOs asking the SEC to go after their shorts and pyramid schemes. Correlation is not causation. Just sayin'
    19 Dec 2012, 03:43 PM Reply Like
  • twritchie416
    , contributor
    Comments (14) | Send Message
     
    Not questioning you, just curious. What other cases have you noticed?
    19 Dec 2012, 04:13 PM Reply Like
  • deercreekvols
    , contributor
    Comments (5758) | Send Message
     
    The stock dropped 11%.

     

    Mr. Ackman didn't try to manipulate HLF, he succeeded, so it seems.

     

    Mission accomplished. On to the next company to short.

     

    Individual investors do not stand much of a chance on Wall Street.
    19 Dec 2012, 03:49 PM Reply Like
  • Remyngton
    , contributor
    Comments (354) | Send Message
     
    maybe you should have owned AAPL , GOOG , or better companies ...

     

    btw , the market's up 100% + over the last 3 years --if you're not making $$$ , it's YOU , not Wall Street
    19 Dec 2012, 05:10 PM Reply Like
  • luckycharlie
    , contributor
    Comments (228) | Send Message
     
    can't HLF just sue the guy for slander? I mean it is pretty obviously meant to harm the business and "pyramid scheme" is pretty inflammatory (unless its true, of course)
    19 Dec 2012, 03:50 PM Reply Like
  • Remyngton
    , contributor
    Comments (354) | Send Message
     
    OF course , but they need to prove it

     

    This sounds a bit like the battle with MBIA , with threats and lawsuits ... The SEC will look into this , on both sides
    19 Dec 2012, 05:10 PM Reply Like
  • G. Hudson
    , contributor
    Comments (297) | Send Message
     
    I didn't know it was Ackman but I predicted all of this in my Seeking Alpha article-

     

    http://seekingalpha.co...

     

    " I would have to believe we will be hearing some negative news about Herbalife this week while he is attempting to drive the share price down. "

     

    "Obviously if there isn't any real underlying problem with Herbalife's business, then the best outcome the whale can hope for is that a large number of longs capitulate by this Friday and sell their shares at the lowest possible share price. I believe that the whale's intentions are to continue to add to his short position this week, driving down Herbalife's share price below $40, with the intent of breaking the will of Herbalife's longs so that many longs capitulate selling the whale their shares at a low price. Also the whale will be able to use those put options that he sold to cover an additional 3 million+ shares that have been shorted."
    19 Dec 2012, 04:08 PM Reply Like
  • 1980XLS-2.0
    , contributor
    Comments (525) | Send Message
     
    The Guys and Diamond Foods cried Foul too.

     

    Get out your ugly sticks. Time to make some money!
    19 Dec 2012, 05:52 PM Reply Like
  • jmartz101
    , contributor
    Comments (187) | Send Message
     
    I know a bunch of people selling HLF products in my area and it is a pyramid scheme. That's the one reason why I never buy a share in this company.
    19 Dec 2012, 04:29 PM Reply Like
  • barmen
    , contributor
    Comments (138) | Send Message
     
    i know a bunch of people starting small stores in my area.
    pyramid scheme? :)
    19 Dec 2012, 05:33 PM Reply Like
  • MNain
    , contributor
    Comments (2) | Send Message
     
    Thats your choice. A bunch of people are selling many other "bunch" of stuff. If you dont buy its your choice. Anyone who says it is a pyramid is just voicing their ignorance. For the company exists for 32 years ...
    21 Dec 2012, 02:32 AM Reply Like
  • jmartz101
    , contributor
    Comments (187) | Send Message
     
    It may be our ignorance but most must have the same view that it is a pyramid scheme with the price action of the stock. It doesn't matter if its been around 32 years, look how long Bernie Madoff ran his scheme it's just getting exposed now.
    21 Dec 2012, 03:42 PM Reply Like
  • Remyngton
    , contributor
    Comments (354) | Send Message
     
    I know a bunch of people TROLLING .... hmmmmmmmm
    28 Dec 2012, 06:14 PM Reply Like
  • jptrad
    , contributor
    Comments (4) | Send Message
     
    Isn't Ackman an activist investor? If so, wouldn't he benefit from a lower purchase price? Just saying
    19 Dec 2012, 06:32 PM Reply Like
  • Prmg
    , contributor
    Comments (2) | Send Message
     
    Time to buy...go long
    20 Dec 2012, 12:12 AM Reply Like
  • Remyngton
    , contributor
    Comments (354) | Send Message
     
    Closed at $33.70 on December 20 , the day you recommended it .

     

    let's see how it does
    28 Dec 2012, 06:16 PM Reply Like
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