Mon, Nov. 7, 10:43 AM
- Herbalife (HLF -0.4%) is down a fraction on light volume in response to the news that a documentary titled "Betting on Zero" will hit theaters sometime in Q1. The film chronicles hedge fund honcho Bill Ackman's attempt to drive the company's stock down with accusations that it operates an illegal pyramid scheme. Despite recent softness, shares are down ~13% in the last two weeks, his efforts have failed to bear fruit.
- Distributor Gunpowder & Sky picked up the movie in a bet on revived/continued public interest in the long-running rhubarb. The movie debuted in April at the Tribeca Film Festival in New York.
- Herbalife is not ignoring the movie, though. It criticizes the film in its Ackman-dedicated website and a lobbying firm engaged by the company allegedly bought half the tickets at a recent screening in an apparent effort to prevent more people from seeing it.
- Director Ted Braun has added new clips to the film including information about the company's $200M FTC settlement and FTC Chief Edith Ramirez's critical comments at a press conference.
- Herbalife stock traded at ~$42 when Mr. Ackman shorted the stock. Today, it exchanges hands for ~$55.
Thu, Nov. 3, 5:28 PM| Thu, Nov. 3, 5:28 PM | 153 Comments
Wed, Nov. 2, 12:00 PM
Tue, Nov. 1, 7:30 PM
- Herbalife (NYSE:HLF) -2.7% AH after reporting Q3 earnings and announcing that it will promote COO Rich Goudis to become the new CEO effective June 1, replacing Michael Johnson, who will become the company's executive chairman.
- Carl Icahn, who disclosed a 20.78% stake in HLF in August, says he fully supports the board's choice of Goudis as the next CEO.
- Part of Goudis’ new job as CEO will be to ward off attacks from Bill Ackman, who has waged a nearly four-year war against HLF.
Tue, Nov. 1, 4:54 PM
- Herbalife (NYSE:HLF) Q3 results ($M): Global Net Sales: 1,122.0 (+1.7%); North America: 241.0 (+9.8%); Mexico: 112.8 (-0.5%); South/Central America: 121.0 (-12.4%): EMEA: 201.6 (+10.5%); Asia Pacific: 231.4 (+3.0%); China: 214.2 (-4.8%).
- Volume Points: North America: 311.6 (+9.3%); Asia Pacific: 275.9 (+6.9%); EMEA: 252.0 (+15.1%); Mexico: 234.5 (+13.2%); South/Central America: 161.1 (-14.6%); China: 153.2 (+2.3%).
- Active Active Sales Leaders: North America: 81,035 (+5.2%); Asia Pacific: 76,315 (-1.1%); EMEA: 84,125 (+12.6%); Mexico: 68,380 (+5.8%); South/Central America: 56,025 (-7.7%); China: 31,719 (+23.4%).
- Net Income: 87.8 (-6.2%); Non-GAAP Net Income: 104.7 (-2.8%); EPS: 1.01 (-7.3%); Non-GAAP EPS: 1.21 (-4.0%); CF Ops: (118.1) (-187.8%).
- Consensus view was non-GAAP EPS of $1.09 on revenues of $1.1B.
- 2016 Guidance: Net Sales Growth: 1 - 2%; Volume Point Growth: 4.5 - 5.5%; EPS: $2.77 - 2.97 from $2.30 - 2.60; Non-GAAP EPS: $4.65 - 4.85 from $4.50 - 4.80.
- Q4 Guidance: Net Sales Growth: (1.5) - 2.5%; Volume Point Growth: (2.5) - 1.5%; EPS: $0.90 - 1.10; Non-GAAP EPS: $0.80 - 1.00.
- 2017 Guidance: Net Sales Growth: 3.5 - 6.5%; Volume Point Growth: 2 - 5%; EPS: $3.95 - 4.35; Non-GAAP EPS: $4.60 - 5.00.
- Shares are down 2% after hours on increased volume.
Tue, Nov. 1, 4:14 PM
Mon, Oct. 31, 5:35 PM
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Mon, Oct. 17, 12:50 PM
- Appearing on CNBC following David Tepper ("pretty cautious, not downright bearish"), Carl Icahn says a lot of companies are "way overvalued."
- "Uniquely undervalued," however, are Xerox (NYSE:XRX), Cheniere (NYSEMKT:LNG), and AIG, says Icahn.
- Herbalife (NYSE:HLF): "I don't understand why there's a 25M share short position ... Could be the mother of all short squeezes."
- Twitter (NYSE:TWTR)? "I haven't looked at Twitter. I'm not going to comment."
Tue, Sep. 20, 4:46 PM
- via Bespoke - see table
- Five of the stocks have > 50% of their shares sold short.
- SHLD leads the pack.
Mon, Sep. 19, 1:45 PM
- In an inside baseball look of Carl Icahn's attempt to unload his 17M shares of Herbalife (HLF -0.2%) in August, Fortune reports the best bid Jefferies was able to obtain was $51.50 per share, roughly $10 less than the open market price at the time.
- Among those Jefferies contacted as a potential buyer was Bill Ackman, who quickly surmised the seller was Icahn.
- A number of events came together, however, giving Icahn just an eight-day window (Aug. 4-12) to sell through an unregistered block trade rather than a formal stock offering. Ackman had his own requirements to worry about, meaning he could only buy about 20% of Icahn's stake within that period.
- Though Jefferies couldn't arrange a sale by the 12th, the process continued, and on Aug. 25 the bank found a group of institutional investors willing to pay $51.50 for 11M of Icahn's 17M shares. The sale would have given Icahn a profit of $167M, but left him holding another 6M shares which could be vulnerable once news of his exit came out. Icahn's response: No deal.
- It was on Aug. 26 when news of his selling interest hit the press. Within hours, Icahn reversed course, picking up another 2.3M shares that day.
Wed, Sep. 14, 3:35 AM
- Carl Icahn is asking regulators for the option to up his Herbalife (NYSE:HLF) stake to 50% and said the company would be "better off private" to rid itself of Bill Ackman and avoid some of the public scrutiny it has received.
- That would be a huge increase, since Icahn's currently limited to 35% of shares (he raised his Herbalife stake last month to 21%).
- HLF +2.4% AH.
Tue, Sep. 13, 9:23 AM
- Herbalife's (NYSE:HLF) long-term tussle with short seller Bill Ackman still has legs. This morning, the company announced the release of a fourth video directed to his "highly questionable tactics to sully the company which "might cross ethical and possibly legal lines" and "clearly do not meet the established norms of Wall Street and standards of activist investors."
- Mr. Ackman launched his short thesis campaign almost four years ago and is still apparently under water.
Fri, Sep. 2, 5:14 PM
- Carl Icahn is still spiting fellow billionaire Bill Ackman, as an SEC filing shows Icahn bought almost another 307,000 shares of Herbalife (HLF +0.3%) two days ago.
- The Form 4 showed Icahn added 306,846 shares at $60.39 on Wednesday -- another $18.5M worth.
- His holdings after that add-on come to 19,611,529 shares ($1.2B worth).
- Last Friday, after Ackman suggested Icahn was trying to get out from under his position, Icahn went public with news that he actually added 2.3M more shares, and criticized Ackman for an "Herbalife obsession."
Fri, Aug. 26, 4:58 PM
- Herbalife (HLF -2.3%) has spiked after hours, +4%, on news that Carl Icahn actually bought 2.3M shares today against reports that he wanted out.
- The news follows a morning report that Icahn was shopping for a buyer for his 18% stake and had instructed Jefferies to find some.
- Icahn said he's never given Jefferies an order to sell his shares. "I continue to believe in Herablife; it's a great model that creates a great number of jobs for people."
- He denied allegations by Pershing Square's Bill Ackman that he had approached Ackman about purchasing his stake, criticizing him for his "Herbalife obsession."
Fri, Aug. 26, 4:59 AM
- Adding another twist to the drama over Herbalife (NYSE:HLF), Jefferies has been looking for the past month to find buyers for Carl Icahn's 18% (roughly $1B) stake in the company, according to David Benoit in the WSJ.
- As if the idea of Herbalife's largest shareholder exiting wasn't enough of a story, the report also says Bill Ackman was among a possible group of buyers.
- Icahn's sale, of course, would come just weeks after he expressed renewed confidence in the company following the FTC settlement, but he's been a seller of a number of stocks this year amid what he sees as a bubbly stock market.
- That Ackman would consider buying isn't so surprising given the squeeze his short position is in.
- Shares are down 6% premarket on increased volume.
Wed, Aug. 24, 2:12 PM
- The stock dropped quickly out of the gates this morning on chatter Carl Icahn might be parting with his 17M share stake in the company.
- It later bounced as Benzinga reported its sources as saying Icahn isn't selling, and Charlie Gasparino reported Herbalife (NYSE:HLF) officials as confirming the same thing.
- Herbalife's board one month ago gave Icahn the right to buy up to 34.99% of the company (up from the previous limit of 25%).
- Shares nevertheless remain near session lows, down 2.55%.