And the stock never comes back under $45? Sorry to be a real dummy. Never shorted before. Just trying to understand how shorting works.
Look at the graph. When HLF was $72 and Einhorn came into call, Ackman admits he was shorting before the call was over. So I assume he started at $72 but to short 24.5 million shares would take longer than a few days. He started and the stock then sent panick to everyone which in turn sold. Stock went down to $45 before his prevention. Actually $42 but I think he finished shorting the rest of his Billion between $45 and $42 thus causing the drop. He may have shorted more from the $42 down to $24 - who knows. I would say he will be forced to start covering anytime between $45 and $50. Which we may see after thursday.
Look at the chart and tell me if it adds up. Makes sense to me. My only question is how many days would it take a billionaire to short this many shares?
Once everyone figures out why the stock dropped in the first place, I feel it will go back up to mid $60's easily. That's where it should be trading at anyways, right. Take Ackman out of the equation and where would it be? That's where it goes from here, then who knows how high after he starts covering.