Quote from Daal:
http://www.businessinsider.com/bill-ackman-short-herbalife-2012-12
I have no intention of holding HLF short for the long-run. Pyramid schemes are a bitch to short. I was short PPD a few years back, similar thesis to HLF it seems, most people make no money yet that did not prevent them from finding idiots to buyout the stock at $70(I was in from $40-$50). FTC and other agencies never did anything
It's hard to get these agencies to do things that might unemploy a lot of people, even if they would be better off if they did. The pyramid also can keep going for longer than you think, HLF has been around for 30 years. USNA had short reports going back for years, thousands of families got scammed by them yet the pyramid just keeps going(CFO and COO stepped down last week, this could be it for the company but I ain't betting on it)
I would like to see his presentation but at first glance I wouldn't short this