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Herbalife Ltd. Message Board

  • kenflannery65 kenflannery65 Jan 31, 2013 1:03 AM Flag

    About the 3 Trades For 5 Million Shares - I can explain

    The guy said he mentioned he called ScottTrade and ScottTrade told him the 5 million share trades were marked as Stock Swaps. This is simple.

    - If they were stock swaps this can only be one of Two Things:
    1. Stock swap happens when people exercise an OPTION Contract, instead of paying cash at the exercise of the OPTION, shares which are in HOLD are used to make the purchase.

    2. Stock swap can be used to sell stocks that have declined in value while AVOIDING capital gains.
    - An investor sells stocks at a loss, RECORD the Loss and use the LOSS to offset other CAPITAL gains on other stocks that you have.

    Again, either way this is not a very important event on the outcome of Herbalife. I think that there are 4 or 5 Institutions that owned at least 5 million shares

    ALSO - This is a 5 million share trade, JUST UNDER the 5% ownership limit for filing a Sched13 I think it is. So whoever bought and sold it kept the shares below SCHED13 reporting limits.

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