Herbalife (HLF) Exposed!

Damn, mofo shorted 20 million shares at a cost of $1 billion. Wants it to go to ZERO.

LOL, who here is scrapping up cash for the "requalification" period?

Sry, embedding video doesn't work for some reason.
http://bloom.bg/R7rzoR
 
I can't speak to what HLF's stock price should be, but it shouldn't be a surprise that they make most of their money by growing a sales organization.

I don't think MLM, or network marketing as they prefer to be called, to be much of a worthwhile endeavor, however for some people it provides some good introductory business and sales experience.

And if people choose to do it, more power to them.

I went through all 360 slides in the presentation and there were no shockers to me. I don't think the stock will go to zero because there is still a large demand for income opportunities.

...and people will pay more money for something sold by someone they know.

I'm not saying I have a horse in this race, but I see a lot of contempt for HLF and I don't think it's deserved.
 
Huh? Did u actually read his argument? They are running a PYRAMID SCHEME. They are using sleight of hand accounting to hide the fact that MAJORITY of their income is derived not from PRODUCTS but from RECRUITMENT and DISTRIBUTORS.

They relied on new people aka SUCKERS, not knowing the full truth of their organization. Now that it's been exposed, it's going to be harder for them to recruit new people. If the SEC doesn't crack down on them more forcefully in the near future, the bad publicity is gonna drive members away.

Formula 1? Nitework? Crap products that are WAY OVERPRICED.

Income opportunities?? Ackman shows clearly that majority of ACTIVE SALERS make barely any money. NON SALERS/INACTIVE SALERS are the losers that keep the organization going. They are the vast majority but yet aren't accounted for.

Other MLMs exist because they are generating most of their income from their products.

Madoff got away with his scam cuz he wrapped his "product" around an aura of legitimacy for a very long time.


Quote from Chicago_CTA:

I can't speak to what HLF's stock price should be, but it shouldn't be a surprise that they make most of their money by growing a sales organization.

I don't think MLM, or network marketing as they prefer to be called, to be much of a worthwhile endeavor, however for some people it provides some good introductory business and sales experience.

And if people choose to do it, more power to them.

I went through all 360 slides in the presentation and there were no shockers to me. I don't think the stock will go to zero because there is still a large demand for income opportunities.

...and people will pay more money for something sold by someone they know.

I'm not saying I have a horse in this race, but I see a lot of contempt for HLF and I don't think it's deserved.
More...
 
The link in the first post in this thread is to Business Insider.

The link to Ackman's HLF page is:
www.FactsAboutHerbalife.com

The link to Ackman's HLF presentation is
http://factsaboutherbalife.com/wp-content/uploads/2012/12/Who-wants-to-be-a-Millionaire.pdf
(link from Business Insider page)

as described here:
http://www.reuters.com/article/2012/12/21/idUSnPre1PkdQa+112+PRN20121221

NEW YORK, Dec. 21, 2012 /PRNewswire/ -- Pershing Square Capital Management, L.P. today announced the launch of
www.FactsAboutHerbalife.com
[http://www.factsaboutherbalife.com/].

The Web site provides the public with information about Herbalife including the source data that were used to create the presentation: "Who wants to be a Millionaire?"
 
http://www.bizjournals.com/triad/news/2012/12/19/herbalife-to-buy-dell-plant-for-222m.html

I heard that HLF is buying a former Dell plant. Dell got lots of deals to build this, all kinds of tax breaks and incentives. I think they did not last here for long before pulling out. The qualities that I heard HLF liked about this place were the interior heights for equipment and also the room for expansion. Current plan is for 500 jobs, some very technical and high paying.

This story came out after the shorts piled in. Did the wonderful powerpoint talk about this?
 
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