Herbalife (HLF) Exposed!

lwlee · Jan 9, 2013

Personally I think the thing is a scam and I would never buy from them just like I would never buy from Direct Buy, another dubious merchandiser. But if the govt doesn't shut them down, I can't see how Ackman will be able to weather the short squeeze from guys like Loeb. Loeb points out HLF could initiate a buyback which would squeeze Ackman even tighter.

Quote from sprstpd:

His argument appears to be:

"Nothing to see here - move along."

sprstpd · Jan 9, 2013

Quote from lwlee:

Personally I think the thing is a scam and I would never buy from them just like I would never buy from Direct Buy, another dubious merchandiser. But if the govt doesn't shut them down, I can't see how Ackman will be able to weather the short squeeze from guys like Loeb. Loeb points out HLF could initiate a buyback which would squeeze Ackman even tighter.

I agree - I have no position. It's just I find Loeb's "arguments" to be unconvincing compared to Ackman's. There is no detail in his comments that make me believe he can refute anything in Ackman's slides.

marketsurfer · Jan 9, 2013

expect a halt within 48 hours

marketsurfer · Jan 9, 2013

Quote from lwlee:

P

thanks for posting the Loeb letter .

atticus · Jan 9, 2013

Quote from lwlee:

Personally I think the thing is a scam and I would never buy from them just like I would never buy from Direct Buy, another dubious merchandiser. But if the govt doesn't shut them down, I can't see how Ackman will be able to weather the short squeeze from guys like Loeb. Loeb points out HLF could initiate a buyback which would squeeze Ackman even tighter.

I'd bet that Loeb is already heading for the exit.

kinggyppo · Jan 9, 2013

hate to post from zerohedge, but if you scroll down you can see Loeb's argument against Ackman's assertation, interesting either way.

HLF is having an analyst day tomorrow anyone know what time that would be, make sure to drink your formula one shake to be ready....

that means you surf!

http://www.zerohedge.com/news/2013-...es-are-worth-55-68-offering-40-70-upside-here

Ash1972 · Jan 9, 2013

Loeb is arguing that whilst black may not be white, it can certainly pass for grey. But let's face it, we live in a regulatory world which let Corzine off scott free, so I don't think HLF will really have much to answer for.

kinggyppo · Jan 9, 2013

Herbalife Ltd. (NYSE:HLF) will host an Analyst and Investor Meeting in New York at 9:00 AM EST on January 10, 2013. Senior management will discuss the company's business in detail:

http://ir.herbalife.com/releasedetail.cfm?ReleaseID=728696

should make for an interesting opening.

hajimow · Jan 9, 2013

I have not traded HLF as of now but I will gamble on 200 shares shorting at 42. Maybe it will go through at 4 AM to 9 AM.

Pekelo · Jan 10, 2013

"Despite being described as "friends" by the Times, Ackman and Loeb also have a history of bad blood. In 2009, Loeb invested in an Ackman fund that was making a huge, leveraged bet on shares of Target, the big-box store that was once a target of Ackman's agitation. When the fund failed to produce results, Loeb lost millions. According to Institutional Investor, Ackman's Target disaster gave Third Point one of its worst years on record."

Mmmmmmmmmm, loving it!!!!