Do you think a person short massive stock would create a report that looked good? Most of his stuff just looks bad, but it isn't proof. The presentation blurs the actions and rules of Herbalife, with the actions of dishonest independent distributors who are abusing the Herbalife policies. Herbalife material clearly shows that most people earn less than $6,000. It is scamster independent distributors who make claims to the contrary against Herbalife diretction. Many of these groups have been shut down by authorities. The great thing about Herbalife, is that they benefit from all this without breaking the laws themselves. Also Ackman leaves out a ton from his report because it doesn't fit his story. The only thing that he really might have, is the compensation structure based on MSRP instead of actual sales price. But that can be fixed by tweaking the model some. FTC probably doesn't give a rats anyway. If they did, they would of taken action 10 years ago. Also, Ackman fails to mention the growing daily consumtion model. This is retail consumption, real meals being consumed each day by once a day buyers. How is that a Ponzi!
I agree, herbalife HLF has screamed pyramid scheme for a long time. The problem is similar companies spend billions in advertising to bring in revenue. HLF spends $0 on advertising and their products are virtually impossible to return. The majority of revenue is from start up fees and distributor sales, way more than the 50% that is allowed.
How was Herbalife's CEO the highest paid CEO in 2011 without a penny spent on advertising and charging more for their product over any similar product lol. This screams PYRAMID SCHEME and ENRON lol.