Ackman Investors realizing he's gambling, not investing their money
The story changed on him and it took us all a few days to realize it. Icahn put the arrow in him when he called him irresponsible, the trade too high risk and dangerous and said he did it all to cover up not being a very good investor.
Hmmmmm. Seriously. This trade is crazy even with your own money. It's unprecedented. No one has ever tried to change the law on a 32 year old public company by shorting 20 million shares and holding a two hour press conference. Clearly some of the best investors in the world think he's an idiot and are loading up on the other side of the trade.
I think he'll have to cover because of redemptions. If you're an individual or administering a pension, you have to be scratching your head saying, "How is this investing?" "How much risk is he taking on with this?" "Why is my money being used in his stunt?" We already know he has no good answers. He'll lobby the government? He'll be run over by the market before the government lifts a finger. He doesn't have that kind of time. The move against him will be complete in a matter of months.
It's a shame. The guy had a nice career going and then blew it all with this ridiculous stunt.
Icahn put the Arrow in Ackman? Are you for Real ?
Today Ackman has about $300 MILLION in paper profits, and is up between 22 and 33%. He'll have to cover because of redemptions? If there are redemptions it will be because Ackman's investors want to lock in their 30% profits after 6 months. Idiot.
Ken, exactly a high probability that they want him to take the money and run. In order to run, he has to cover. If he covers now his investment alone will drive the stocks price over $50, if he covers slowly he runs the risk of a tender offer or LBO.
He has put his clients money at risk by not covering at $25 or so.
Profits are only taken when he cashes out. He'll lose money on HLF and the amount will determine when he starts to cover. His investors all have to be scratching their head wondering about this zero number. Even if FTC had a problem with hlf and kicked them out of the US it would never go to zero. He should have covered at $24 - Now his investors will force him to cover now unless he wants to put up his own personal money - LOL oh that's right, he doesn't have a Billion and wouldn't risk it all if he did. LOL @ all of you dumb shorts.
They won't have 30% profit on this even if he started covering tomorrow. The price would shoot to $60 before he could cover half of it. Everyone will be waiting (as they have been for months) to start buying when he starts covering. It will be a buying frenzy and us little guys may even buy more at $55/$60/$65
Icahn owns this little weasel. Oh and not to mention how much he will be buying. LOL
If you guys don't realize how bad this news is for you, then you'll see soon enough.
You actually think people are happy Ackman is gambling their money on a stunt and has half of wall street looking to take him out? It's unseemly, it's risky and most of all, it's not investing. It's People should put their money with someone who is good enough at investing to never have to consider a crazy scheme like this. It's now being reported they are doing just that. Stay short, idiot.