Carl Icahn looks to be out for blood, disclosing late today that he's bought 14M shares,...

Carl Icahn looks to be out for blood, disclosing late today that he's bought 14M shares, representing a 13% stake in battered Herbalife (HLF). According to the SEC filing, Icahn claims to "have conducted significant analysis," and "concluded that the company has a legitimate business model, with favorable long-term opportunities for growth." The disclosure further adds that he intends to have discussions with management regarding the business and strategic alternatives to enhance shareholder value, such as a recapitalization or going-private. Shares +20% AH.

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Comments (27)
  • Rbbrooke
    , contributor
    Comments (65) | Send Message
    Beautiful. And HFL deserves to be private so they may focus on the distributors and customers as stakeholder vs defending their stock price against the ponzi stock market schemes. I expect Ackman will be crushed under a billion pounds of fools gold
    14 Feb 2013, 06:03 PM Reply Like
  • barmen
    , contributor
    Comments (156) | Send Message
    i prefer private :)
    14 Feb 2013, 07:24 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3121) | Send Message
    I suspect neither care about this company or the market, they are just taking advantage of the gaming setup and looking at the profit potential.
    14 Feb 2013, 06:07 PM Reply Like
  • sid18
    , contributor
    Comments (380) | Send Message
    Of course. Aren't we all?
    14 Feb 2013, 07:00 PM Reply Like
  • joyjox007
    , contributor
    Comments (110) | Send Message
    Yes. same with me. I am going to sell 1/3rd of my position tomorrow at 55% gain.
    14 Feb 2013, 07:24 PM Reply Like
  • Ted Bear
    , contributor
    Comments (676) | Send Message
    Much like the guy who is propsoing a recapitalization of Apple, this is ONLY about the money.


    If Icahn can make a killing by creating a squeeze, he will do so. If Ackman can hang on during such an event, which EVERY good short goes through, he can make a killing too. It might be $100 before it is zero; that is just how these things evolve.


    Just a game, played by some filthy rich hedgies. Nothing for the public to be involved in, that's for certain.
    14 Feb 2013, 06:15 PM Reply Like
  • Albert Alfonso
    , contributor
    Comments (3081) | Send Message
    I hope Ackman bought some calls to hedge his massive short
    14 Feb 2013, 06:19 PM Reply Like
  • Pinocchio1
    , contributor
    Comments (206) | Send Message
    I think an investigation of Ackman's short is more fitting and more likey than an investigation of HLF


    I Love this squeeze
    14 Feb 2013, 06:41 PM Reply Like
  • Ghosts of Kariela
    , contributor
    Comments (152) | Send Message
    Why would Ackman be investigated?
    14 Feb 2013, 07:23 PM Reply Like
  • Pinocchio1
    , contributor
    Comments (206) | Send Message
    stock manipulation? inside info?


    A little refresher...
    When Einhorn asked his 2cent Q's in HLF' earning call, his intention to be there was leaked to major media a few hours before the Call, and the stock crashed before he asked his non-questions.
    Actually the stock crashed before it went on CNBC !!!!
    The rumor, or should we say insider info was circling already.


    Ackman actually built his short around this time.
    Einhorn made waves for his friends surfing the short ??? maybe ?
    Did Ackman short HLF BEFORE it was common knowledge that Einhorn will attend HLF meetings?
    I wonder... SEC should too.


    There is more, but I am sure SEC and others have more info, more ideas and more access to what they need.


    Massive shorts should automatically be investigated, just like every touch-down in football.


    I actually think that shorts should be banned on real assets (non-synthetic).
    Can you short your home, a car....
    you like Honda, better than Car-B... so you buy Honda. You don't go to the dealer and short Car-B because their electrical is bad. You just don't buy Car-B and let the free market work.


    the short is one of the tools invented by Wall St greed. It has no role is anything to do with raising capital, job creation, retirement security, or any other reason for having a stock market...
    and while having no benefit
    it is a hotbed for corruption, inside info, stock manipulation etc.
    Everything that sucks in today's market


    And yes, all the Wall St people here want to catch me in a dark alley. How dare I take their corruption-advantage.
    Hey guys, don't worry, you have all of Congress in your back pocket
    The Tea Party will destroy Amerika before banning shorts


    Free market does NOT include shorting as a balancing mechanism. Free market is based on competition - NOT of shorts. Competition among LONGs. In every industry, in every sector... except Wall St.


    And why allow shorts on Synthetic? because the CDS and similar stuff... might require hedging by nature.
    Forex hedging for exporters importers... this I can see as well.
    It's real and needed. Minimizing forex effects is totally good business.


    But shorting HLF ? why? you have beef with their marketing?
    you want to Save Amerika? write a letter to the SEC/FTC...
    15 Feb 2013, 06:26 AM Reply Like
  • freeman8201
    , contributor
    Comments (814) | Send Message
    The house needs to make money, akin to a casino offering insurance on black jack. I don't know about shorts but futures, and options, have existed since the times of greek lore.
    23 Feb 2013, 06:26 PM Reply Like
  • Beta_Adjusted
    , contributor
    Comments (65) | Send Message
    despite this news, stock has barely moved ... strange? provided that Ackman is wrong/has his timing incorrect (the company is >30 years old, why should anything happen now?), the stock is very very cheap.
    14 Feb 2013, 06:43 PM Reply Like
  • TakeFive
    , contributor
    Comments (5130) | Send Message
    HLF is up 22.5%
    14 Feb 2013, 06:53 PM Reply Like
  • NYPaperman
    , contributor
    Comments (36) | Send Message
    Ackman did manipulate the market of that there is no doubt. He used a blatant "short and distort" ploy - and that is illegal. Ackman aimed a barrage of irrelevant first and second tier questions at Herbalife in hopes that if a few questions (as used by Einhorn) were disruptive then an Ackman media event followed by a torrent of questions would be extremely disrupting and he would win with his short position. If Herbalife and Icahn can force the SEC to investigate Ackman's fraudulent behavior that would be great. However, I doubt that the SEC will involve itself - they like long naps. Herbalife wants the issue to just go away and Icahn lives off of these actions. Icahn sees Ackman as a schoolyard coward and wants revenge from an event that occurred several years ago. Ackman is going to get pantsed and in a larger forum than a schoolyard - on that I'll place a long position on Ackman's nasty shorts. Hope Ackman enjoys the squeeze. Beautiful sunset tonight!
    14 Feb 2013, 07:10 PM Reply Like
  • Ghosts of Kariela
    , contributor
    Comments (152) | Send Message
    Ackman didn't cover when the stock dropped.I doesn't seem to look like a short and distort, I guess you could make the argument that Ackman is slandering/ writing libel about Herbalife, but why hasn't Herbalife filed a suit against Ackman then?
    14 Feb 2013, 07:26 PM Reply Like
  • Wally World
    , contributor
    Comments (125) | Send Message
    its all over but Ackman's crying.
    14 Feb 2013, 08:11 PM Reply Like
  • Continental Kid
    , contributor
    Comments (238) | Send Message
    Ackman made a pure and simple bear raid.....he went short.. then went public...realizing the power of headlines on the market ....why...?...possiably because he is losing his ass on JCP almost everyday and still when on stage has the gall to say that JCP is the most undervalued stock ever.....note the contrast in his point of view .....always talking his book ......they all do it...but in this case more POWER to Icahn
    14 Feb 2013, 08:20 PM Reply Like
  • Hendershott
    , contributor
    Comments (1685) | Send Message
    Financing a go private transaction might prove difficult, unless Carl wants to fund it.
    14 Feb 2013, 08:46 PM Reply Like
  • Brandond
    , contributor
    Comments (473) | Send Message
    Going to be laughing all the way to the bank; hurt buying more HLF last week but the Ackman squeeze is going to park a nice new car in my driveway. So much for all the bozos who have been railing on the HLF business model.


    Thanks Carl!!!!!!!!!!!
    14 Feb 2013, 08:57 PM Reply Like
  • tough times
    , contributor
    Comments (57) | Send Message
    Ackman claimed his position isn't leveraged on CNBC. He might hv just Puts long & no futures...Who knows, he might hv booked profits as well when stock crashed on fake news of investigation before recovering at close that day...
    This seems more of Ego Battle than company fundamentals..Both are baying for blood now...let them fight it out...Both are big guys with deep pockets...


    People should stay away from HLF
    14 Feb 2013, 08:57 PM Reply Like
  • wadeyr
    , contributor
    Comments (199) | Send Message
    The reason for the stake probably is because both are fighting over each other more than the company. keep in mind of the fight that took place several weeks ago and what both said during the meeting. watch here if you missed the fight:
    14 Feb 2013, 09:33 PM Reply Like
  • Matt Stewart
    , contributor
    Comments (1175) | Send Message
    All news editors should be shot...Icahn has not acquired 13% of anything....he put up a snall amount of capital to buy call options on the stock...unless he exercises these options he owns nothing and has no voting control...


    obvious effort to trigger ashort squeeze/bum rush Ackman...


    13% of the company would cost $500 million


    Icahn has risked a fraction of that amount...chump change...


    let's get the story straight please editors...
    14 Feb 2013, 09:49 PM Reply Like
  • bettsdv
    , contributor
    Comments (55) | Send Message
    Ican and Ax if they're in I'd like to be out! Short herb life not herb! These guys can loose billions of not they're own$ and still sway markets! If your ahead of them ur lucky, pork ur own pig and say nice UFC on CNBC and bye the way it is "LENT".
    14 Feb 2013, 10:22 PM Reply Like
  • Prescient Investment Analysis
    , contributor
    Comments (260) | Send Message
    If Carl Icahn has "Conducted significant analysis," there may be reason to fear for Dan Ravicher and the adequacy of his own scrutiny.
    15 Feb 2013, 02:22 PM Reply Like
  • Ghosts of Kariela
    , contributor
    Comments (152) | Send Message
    Yes, but it would appear that Ackman has conducted significant analysis as well. So.... your point is?
    15 Feb 2013, 02:24 PM Reply Like
  • bettsdv
    , contributor
    Comments (55) | Send Message
    How about after Icahn's ass was kicked on CNBC phone interview. Carl was pissed and used a 1/2 billion dollars of investors money to try and squeeze Steve's short who received 75 million judgment that Carl's still bitter about.
    Now that I can believe!!
    17 Feb 2013, 12:03 PM Reply Like
  • Wally World
    , contributor
    Comments (125) | Send Message
    Didn't Icahn buy the stock in December? If so so much for your theory.
    17 Feb 2013, 12:05 PM Reply Like
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