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Herbalife Ltd. (HLF)

  • Nov. 14, 2014, 8:15 AM
    • SA Contributor Matt Stewart writes that Herbalife (NYSE:HLF) Chairman's Club and board member Pedro Cardoso is one of 12 people charged in a years-old embezzlement case in Brazil. Mr. Cardoso was a partner in a company that was connected to a firm that allegedly siphoned 26.7M Brazilian reais ($10.4M) from the state government in Espirito Santo under the guise of making donations to community centers, schools and hospitals. Instead, the money was used to fund private events that had no public interest.
    • The company in question is the Assembleia Legislativa do Espirito Santo (ALES) headed by Jose Carlos Gratz. Mr. Cardoso was a partner in a firm that cashed an ALES check in 1999 for 6,000 Brazilian reais that was signed by Mr. Gratz.
    • Under SEC disclosure rules, companies must report legal proceedings that are material in evaluating the integrity of a director. Herbalife has not done so. In a statement mailed to Reuters by an Herbalife official, Mr. Cardoso said the case is a private matter dating back to 1998 which has no bearing on his work with Herbalife. "I have received no official notification of any kind with regards to this matter, " he said.
    • The 8th Criminal Court of Vitoria ordered bailiffs to serve him with a subpoena in 2010 but they were unable to locate him because he moved several times without notifying the court so the case remains open.
    • Herbalife and the SEC declined further comment.
  • Nov. 4, 2014, 12:44 PM
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  • Nov. 4, 2014, 9:15 AM
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  • Nov. 4, 2014, 6:59 AM
    • Herbalife (NYSE:HLF) is down 17% premarket on light volume (although it's 2.5 hours before the open) in response to its earnings report yesterday. Net income was off 92%, year-to-date cash flow from operations was off 22% and guidance for sales growth is now negative.
  • Nov. 3, 2014, 5:38 PM
    • Top gainers, as of 5:15 p.m.: BLMN +19.4%. AUQ +9.0%. ABEV +8.5%. ELNK +8.3%. AMX +7.0%.
    • Top losers, as of 5:15 p.m.: BRDR -22.1%. SALE -18.2%. HLF -12.4%. CHGG -8.7%. S -6.8%.
  • Nov. 3, 2014, 5:02 PM
    • Herbalife (NYSE:HLFQ3 results ($M): Total Revenues: 1,256.2 (+3.5%); Gross Profit: 1,001.2 (+2.7%); Operating Income: 27.6 (-85.6%); Net Income: 11.2 (-92.1%); EPS: 0.13 (-90.2%); Quick Assets: 449.5 (-30.0%); CF Ops (9 mo.): 449.5 (-22.1%).
    • 2014 Guidance: Volume point growth (ex. Venezuela): 0 - 3% from 5 - 6%; Volume point growth including VZ: (3) - 0% from 2.7 - 3.5%; Net sales growth: (8) - (5)% from 3.5 - 4.3%; EPS ex. items: $1.30 - 1.40 from $5.80 - 5.90; capex: $52M - 62M from $170M - 180M; effective tax rate: 27 - 29% from 27.5 - 29.5%.
    • Shares off 13% after hours on robust volume.
  • Nov. 3, 2014, 4:44 PM
    • Herbalife (NYSE:HLF): Q3 EPS of $1.45 misses by $0.06.
    • Revenue of $1.26B (+4.1% Y/Y) misses by $60M.
    • Shares -13%.
    • Press Release
  • Nov. 2, 2014, 5:35 PM
  • Oct. 31, 2014, 6:59 PM
    • Herbalife (NYSE:HLF) has settled an 18-month-old class-action suit accusing the company of operating a pyramid scheme. Financial terms are undisclosed; Herbalife says the settlement doesn't feature "an admission of liability or wrongdoing."
    • Former distributor Dana Bostick originally filed the suit, alleging his efforts were "doomed from the start by an Herbalife marketing plan that systematically rewards recruiting over retail sales."
    • Last year, Herbalife amended its distributor agreements to preclude distributors from filing jury and class-action suits.
  • Oct. 20, 2014, 9:01 AM
    • At last report, Herbalife's (NYSE:HLF) biggest sell-side bull had exited DA Davidson and was rumored to maybe be joining Bill Stiritz who was then musing about an LBO of the company.
    • Now at Pivotal Research, Tim Ramey starts Herbalife with a Buy and price target of $110. "If our job as analysts is to assess risk, quantify upside, and understand the downside, there is perhaps no better example of 'alpha' in the stock market today than Herbalife."
    • Shares +2.75% premarket
  • Oct. 13, 2014, 8:05 AM
    • In another moved aimed at changing its perception, Herbalife (NYSE:HLF) is banning its U.S. distributors from using independent web sites and forcing them to migrating their businesses to a corporate-controlled hub.
    • The move is an attempt to exert more control over HLF’s sales force and follows some instances in which distributors were accused of making false health claims about the company’s products.“The web sites are designed to be in compliance with applicable requirements about product claims and they provide a consistent brand image for Herbalife products,” the company said in an advisory.
    • The change goes into effect Nov. 15.
    • Source: NY Post
  • Oct. 7, 2014, 2:35 PM
    • Herbalife (HLF -2.7%) has been under investigation for months about whether it's operating as an illegal pyramid scheme, and senior executives at the company, tell Fox News it's a near-certainty the company will avoid the death penalty, though some action - perhaps a mix of fines and sanctions - remains a distinct possibility.
    • Herbalife insiders note the FTC - when it sees illegal multi-level marketing schemes at work - has moved quickly to shut a number of them in recent years. The fact that no action has yet been taken gives the executives another level of confidence the company will survive.
  • Oct. 6, 2014, 5:25 PM
    • Herbalife (HLF +6%) will report Q3 results on Monday, November 3 after the close. The conference call will be held the next day beginning at 8:00 am PT.
    • Consensus view is EPS of $1.53 on revenues of $1.33B.
  • Oct. 6, 2014, 12:10 PM
    • Herbalife (HLF +2%) hires former FTC commissioner Pamela Jones Harbour as the newly-created head of compliance. She will lead a global team covering 91 markets. Ms. Harbour is a former prosecutor who was recently leading the privacy and data-protection team at the law firm BakerHostetler.
    • The move by Herbalife CEO Michael Johnson is one of several he has made in response to the two-year bearish campaign by Pershing Square's Bill Ackman. Mr. Johnson has strengthened his firm's product return policy, banned outside sales leads, added new training and new distributors now must acknowledge protections in writing. One outcome of the hiring of Ms. Harbour may be stricter policing of distributors.
    • Herbalife denies Ackman's accusations that it is a pyramid scheme and says his claims are "completely false and fabricated."
    • Several investigations into Herbalife's business by regulators and law enforcement are ongoing.
  • Sep. 30, 2014, 2:47 PM
    • According to the SEC, Filip Szymik learned in advance from his roommate - then a Pershing Square analyst - about Bill Ackman's public announcement of a short in Herbalife (HLF +0.4%) in late 2012.
    • Szymik then tipped off Jordan Peixoto, who purchased put options on HLF a day ahead of Ackman's Dec. 20, 2012 presentation. Peixoto reaped $47.1K in illicit profits from the deal, says the SEC.
  • Sep. 22, 2014, 3:50 PM
    • There's no apparent news to report on other than speculation heavy put volume in the stock is the result of Carl Icahn unloading his position.
    • Herbalife (HLF -12.7%), Nu Skin (NUS -3.2%).
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Company Description
Herbalife Ltd is a nutrition company. The Companyalong with its subsidiariessells weight management, targeted nutrition, energy, sports & fitness, and outer nutrition products.