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Herbalife (HLF -2%) is digging deep to defend itself against the rancorous criticism from hedge...

Herbalife (HLF -2%) is digging deep to defend itself against the rancorous criticism from hedge fund manager Bill Ackman, who accuses HLF of being a "sophisticated pyramid scheme.". CEO Michael Johnson is calling out to its top institutional investors to dispute the claim, and has top company officials preparing a point-by-point defense against Ackman's assertions.
Comments (14)
  • Stone Fox Capital
    , contributor
    Comments (5589) | Send Message
     
    best defense is to keep reporting strong numbers and buying up cheap stock. Lets see Michael Johnson load up on shares instead of fighting Ackman.
    24 Dec 2012, 10:04 AM Reply Like
  • TwistTie
    , contributor
    Comments (2477) | Send Message
     
    Now you're talking brother (or brotherette as the case may be).
    24 Dec 2012, 12:06 PM Reply Like
  • silence_twain
    , contributor
    Comments (326) | Send Message
     
    I agree. I have no interest in the name, but if I were a shareholder, I don't want a phone call from the CEO or a fancy PowerPoint rebuttal, I would like to see insiders purchase a meaningful amount of stock.
    24 Dec 2012, 12:21 PM Reply Like
  • Small Cap Machine
    , contributor
    Comments (205) | Send Message
     
    LBO #2
    24 Dec 2012, 10:09 AM Reply Like
  • Deja Vu
    , contributor
    Comments (1100) | Send Message
     
    "CEO Michael Johnson is calling out to its top institutional investors to dispute the claim"

     

    Umm...does he really want to do that? True, he may get one or two to voice support to support the stock until they can unload their positions, but if one were to publicly attack him, it would be the end of HLF stock. Translation - very limited upside, enormous downside. Smacks a lot of desperation.
    24 Dec 2012, 10:10 AM Reply Like
  • Gary L K
    , contributor
    Comments (57) | Send Message
     
    Call out to the people that have been into Herbal life for less then a year to talk about how much money they have been making (not). These people have put in $1000 to $3000 for product so far. How are they doing? Have they lost weight even if they have only spent money?
    How about drive buy support of 1-2 year veterans in their new cars around the stock exchange. These are the people allegedly getting suckered out of their cash with the false hope of making a lot or even a little money. They could refute Ackerman's Facts and save Herbalife.
    24 Dec 2012, 10:40 AM Reply Like
  • Herbalife happy customer
    , contributor
    Comment (1) | Send Message
     
    Ackman is a senseless manipulator. HLF is a legitimate company with a solid business model and worldwide sales that reach$3.4B.
    24 Dec 2012, 01:27 PM Reply Like
  • Gary L K
    , contributor
    Comments (57) | Send Message
     
    How many shakes did you need to snort to know it is legit?

     

    Herbalife is based upon offering people productive work and then taking their money, as much as they can. Then blame the people for not working hard enough and get rid of them.
    The new Herbalife lapel pins: "Want to Lose Money, Ask Me How". Unofficial for now.
    Corporate success strategy "Never Give A Sucker An Even Break".
    25 Dec 2012, 11:07 AM Reply Like
  • randy58s
    , contributor
    Comments (2) | Send Message
     
    Why does HLF's CEO take too much time, week of Jan. 7th, to respond to Bill Ackman's attack? They are in the business for 32 years, they should know the ins and outs of the business. They should do a presentation right after Bill Ackman's presentation and not threatened him.
    24 Dec 2012, 01:48 PM Reply Like
  • Tony Dee
    , contributor
    Comments (347) | Send Message
     
    Many analysts have already spoken out in favor of Herbalife. Did you miss the article where analysts stated that "Ackman's assessment was flawed" "He gets an A for effort but fails horribly on substance"

     

    I expect more to come forward. I would like the SEC and FTC to investigate Ackman to see how much be made by buying puts last week. Oh I know he says he didn't buy any puts he is short. But he has already lied about Herbalife. So why do you think he would not also lie about buying puts?
    24 Dec 2012, 01:51 PM Reply Like
  • silence_twain
    , contributor
    Comments (326) | Send Message
     
    I have no idea who is right or wrong between HLF and Ackman, but I do know that listening to sell side analysts is a great way to go broke very quickly!
    25 Dec 2012, 12:53 PM Reply Like
  • WallStreetDebunker
    , contributor
    Comments (2106) | Send Message
     
    Ackman's financial brilliance is perhaps matched only by his impressive head of hair. I wonder if he got one of those "free haircuts for kids" at JC Penney to go along with the haircut he got on his JC Penney stock.
    24 Dec 2012, 02:15 PM Reply Like
  • Out-vestments
    , contributor
    Comments (12) | Send Message
     
    check out this link: bit.ly/W05Rje - lays out Ackerman strategy from the get go - and shows that he and Einhorn are friends for 14 years - yet he said, in a recent CNBC interview with Aaron Sorkin that he did not discuss HLF with Einhorn in the interview from May 2010, he calls Einhorn his "marketing advisor" - enough said. This was a 1st short seller coordinated attack with Einhorn laying the ground work in May and Ackman coming up the back side in December.
    25 Dec 2012, 01:36 PM Reply Like
  • TwistTie
    , contributor
    Comments (2477) | Send Message
     
    I didn't realize that snakes made friends.

     

    But then I'm not a herpetologist.
    26 Dec 2012, 11:45 AM Reply Like
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