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Ackman's Stalingrad

|Includes: Herbalife Ltd. (HLF)

A trade can appear to some as a battle in a prolonged war.Each side claiming small victories as the fight intensifies.The Herbalife - HLF - saga between shorts and longs has all the characteristics of a Stalingrad fight to the death.On the long side Carl Icahn and the other William Ackman defending the short position.Icahn has been the early winner so far,but is the battle over ? I would say time will determine the victor just as it did at Stalingrad.When the Germans held over ninety percent of the city most figured the game was over for the Russians.War is a chess match where a bad move can prove fatal in the end.The same logic can be applied to a stock trade where the early returns look to be going in your favor.The Germans eventually lost this battle because their rear flanks were left exposed.This mistake was exploited by the Russians to gain an upper hand and led them to victory.A lot can be learned from history and the time may be right for Mr.Icahn to make sure his flanks are well guarded.Is a fight to the finish required to determine a winner? Dan Loeb has exited his long position on Herbalife maybe Carl Icahn should consider this move.Better to continue the journey to fight more battles in the future.General Paulus would agree to that simplified decision.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.