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In his Q4 letter to investors, Third Point's Dan Loeb outlines his thesis for taking a stake in...

In his Q4 letter to investors, Third Point's Dan Loeb outlines his thesis for taking a stake in Herbalife (HLF). Loeb points out that the research his firm conducted showed no evidence of any pyramid scheme, and the beating the stock took at the hands of Ackman created an attractive entry point to buy the shares. By applying a modest 10-12x earnings multiple, Loeb suggests the stock's worth between $55 - 68 per share - translating to 40% - 70% upside from current levels.
Comments (2)
  • Kudos to him... meanwhile Ackman probably made out like a bandit too while SEC is/was asleep at the wheel as usual, meanwhile small investors got put through the stress ringer, alot of panic sells in the 20's no doubt...sad
    9 Jan 2013, 03:45 PM Reply Like
  • Very sad..which is why this sort of thing must stop. There will be no public companies soon if this keeps up.
    9 Jan 2013, 04:20 PM Reply Like
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