Imagine if they came out and started buying 10 million shares. The price would spike to $55-$60 thus first causing a retail short margin call which would then take the shares to $70-$80 which would then cause any large shorts to cover up to $100 and would bury Ackman and cause him to cover because he would be $500,000,000 in the red with no end in sight. Once he started to cover it would take the price to at least $180-$200 just like the one analyst said. When I was thinking of this at first I thought it was crazy but after meditating on it for a while I thought "this really is possible". I bet you that is why they waited till Thursday to announce earnings. They took all of the January options out of the picture because if Ackman did own them he would be able to exercise them to cover his shorts. Now come Tuesday he is in trouble. Mr. Johnson if you do this you are a genius!! jmho
Sentiment: Strong Buy
During the VW short squeeze, shares of the stock went from 200 to over 1,000. The conditions were just right for a major short squeeze. So a target price of 180 for HLF is always a possibility.
I am surprised that the VW short squeeze had gone as far as it did since options were available to hedge the short position.
When people start to reference the VW squeeze, a once in a GENERATION event, even rarer than a black swan event, then you know this board is outta control and we'll all get squished...
worry about adding some dollars to your account at the end of each day, not thousands. Grow your account brick by brick, manage risk, lock in profits whenever you can and you'll live to trade another day...
Swing for the fences and you'll be broke, divorced or almost both..
Sorry but company buy backs dont work like that. They would be guilty of stock manipulation and another SEC investigation is the last thing they need. It would not make Mr. Johnson a genius as you say, but a convict.
Sentiment: Strong Sell