Had he been smart, once the stock went below 30$ he would have switched back to long and declared "sorry, I was wrong", and had made a gazillion on the long side. After all you can only make 100% by shorting a stock. ( I know he used options too) The point is, a stock can go to zero slower than you can stay solvent and you can make more money on the long side... I don't buy his BS that he did the exposure for the greater good...
"Carl Icahn And Herbalife Are Crushing Bill Ackman" source: Forbes http://www.forbes.com/sites/nathanv...icahn-and-herbalife-are-crushing-bill-ackman/ "Increasingly, it seems like Carl Icahn is getting the better of Ackman in a high-stakes drama that has captivated Wall Street this year......" "The flip side for Ackman and his investors is that the Herbalife short is significantly hurting his hedge fund returns this year while the stock market booms. ...." ouch..that's gona hurt
I hope the guy who is short the stock has got some calls. At earlier strike prices. Could be a rope a dope. SHort X and profit Y on the calls. That would have been brilliant. If only.
As soon as the SEC/FTC clears HLF of any wrong doing, Ackman's thesis will be moot and HLF could surge $40 or more. He's like an injured cockroach that needs to be put out of his misery. 10,000 th post!!!!
http://www.benzinga.com/news/13/06/...-from-california-urges-ftc-to-probe-herbalife a short break down of the recent claims
If you don't spend money on advertising then any news is good publicity. The people who sit and judge MLMs are not aware of how legal these companies are and how they have taken every step imaginable to avoid the Pyramid scheme stigma. Every person has an opportunity to make more than the person who invited them in and therefore by definition this is not a scheme. From the outside it may look like a pyramid but internally its all one giant affiliate company. Amway is the blueprint and they stand together. The benefits of the MLM far outweigh the costs and the products are good. In any event the HLF Short is a classic tragedy. $50 price target in 12 months. Carl Ichan is probably taking some of the herbs himself. HLF is a lifestyle.
No I think 50 is stable its a 10% growth per year company with steady growth as members fall in and fall out of their MLM family. Thanks for the KUDOS. Carl Ichan needs to send me a basket. Those Herbs can replace your Viagra Im told. If thats the sales pitch then Im sure Ackerman will not want Carl standing behind him in the coffee and donuts line. LOL.
These guys are hyping a $78 trgt: http://www.valuewalk.com/2013/07/herbalife-soars-da-davidson-report/ Anything is possible with 32% short interest.