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Herbalife(HLF) responds in a company e-mail to Ackman's presentation earlier today, calling it...

Herbalife(HLF) responds in a company e-mail to Ackman's presentation earlier today, calling it distorted and inaccurate, and “yet another attempt to illegally manipulate the market by overzealous short-sellers.” HLF notes that it hires outside experts to ensure it complies with law.
Comments (5)
  • The guy has some guts. I just saw an article and confirmed it that Ackman is short some 20M shares of HLF stock. Basically it went on to say he IS the short position in the stock.. There have been a few shorts where he hasn't been right (O, SPG) but the short positions that gave him the fanfare for being correct are those where he's been touting his position similar to what he is doing now.

     

    If I was an HLF shareholder, I'd be greatly concerned about what he may stir up. I wouldn't be surprised to see a regulator or two pounce on the company to investigate their business practices.
    20 Dec 2012, 06:32 PM Reply Like
  • I would prefer seeing the SEC jump on their financial-buddy Ackman.
    Wouldn't that be nice...

     

    HLF has been around when Ackman was in dipers. No publicly traded "pyramid" can last this long.
    I would also like to see HLF sue Ackman and drag him through hell

     

    Wall St sucks
    20 Dec 2012, 07:08 PM Reply Like
  • I'm thinking long term and just purchased a lot more HLF today. I originally got into the stock a few years ago after buying several Herbalife products every month for almost 5 years. Do I wish the products were sold in a supermarket rather than through a distributor, yes.

     

    However, for the inconvenience of having to buy through my local distributor outside Boston, I probably avoid the typically multiple middlemen in the normal retail space so I'm saving money. As a CPA who has worked in several large companies before retiring, I know how to read financials and I see no signs of irregularities. Tons of free cash flow, DSO virtually unchanged year over year and nothing unusua in inventories. So, all I can do is assume Ackman is manipulating the market and go along for the ride by taking advantage of the price change in the stock.

     

    Thanks Bill, I can stand any short term pain and we'll see where the stock goes in 6-9 months.
    20 Dec 2012, 06:51 PM Reply Like
  • I'm saddened to see the damage that Ackman's manipulation is doing to the investors who don't have the courage to stick.
    21 Dec 2012, 01:04 AM Reply Like
  • Nothing is going to change unless the public, in numbers, makes the SEC do its job. Ackman may NOT have puts; his phones may NOT reflect calls to Einhorn, but does he have throw away cells? Does he have friends who own puts?

     

    Does the SEC have the power to find out? Sure. Will they? Not on your life. They are betting the little investor who is losing their retirement to these few people, will not know who or where to turn.

     

    They are likely correct. That's why there IS no fairness in the market. I have made more in options this year using 20% of my divvy growth portfolio than I made in dividends. It's pathetic. There simply are NO rules, because the police are asleep.

     

    In legal terms, it's called "Willful Blindness"
    21 Dec 2012, 07:30 AM Reply Like
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