Ackman'a Herbalife Short Brings $650M Paper Loss
- Thread starter JamesL
- Start date
Yes my sentence is completely off. I meant to say that there is no way he would not hedge when he was up greatly in December. Especially with all the people taking the other side to his trade.
I highly doubt ackman is taking a loss here, anyway, didn't he short if from the 60-70 dollar range anyway? He could still be slightly green on the short position, while he has 2000% on a option position.
Just my opinion.
Just an idea:
There are 103 mill outstanding shaers of HLF. Let's assume Ackman succeed to push the price down to single digits. Then those 2 behemots (Soros, Icahn) could buy up the whole company for a few hundred mill and take it private...
Or they could just establish a huge stake (let's say 80-90%) with very little float and cause a huge short squisse. The point is that there are so many reasons why Ackman's plan to drive HLF down to the ground wouldn't have worked.....
There are 103 mill outstanding shaers of HLF. Let's assume Ackman succeed to push the price down to single digits. Then those 2 behemots (Soros, Icahn) could buy up the whole company for a few hundred mill and take it private...
Or they could just establish a huge stake (let's say 80-90%) with very little float and cause a huge short squisse. The point is that there are so many reasons why Ackman's plan to drive HLF down to the ground wouldn't have worked.....
i'd doubt that he's out.
if there's a squeeze, the volume will be much larger than it's been. also, i'd expect his other holdings to go opposite his position (ie. when he had JCP long, expect it to go down; i know he's no longer in it) as other people on the street start tightening the screws.
It's money game! I wouldn't disclose any info about the position. He thinks he is a hot shot. other hedge funds would gang up on him. especially, short position. I don't think he has a direct line to Bernanke!!!