Ackman is so disingenuous. He is conducting this short and his campaign against HLF as a service to the distributors that use the product and sell it for an income.Not to benefit his shareholders. The "Charity" will be his own foundation. He made a reckless bet and now he lies, manipulates, distorts everything about the company and their employees,distributors and customers.He is so pious. I am doing this for all the people who HLF has harmed. Get real. He is doing it to cover up his own investment disaster in his hedge fund from last year. Ever heard of JCP ? His bet there has been a disaster. He was up under 4% in the Hedge fund he runs so to cover the loss he yells fire in the theatre just in time to affect this years results. Loeb and some others spotted this for what it is a sham and a viscious attack on a company, their brand, employees and consumer The company has achieved stellar results for several years and has very few complaints registered against them. Distributors may return the product to HLF. There is no obligation to fill your garage up which is central to Ackman's thesis.
Herbalife would already be out of business in the USA if Ackman's allegations were correct. Instead the market continues to grow at a very healthy rate.Bill Ackman is a smart, ruthless and unethical opponent. Not uncommon on Wall Street so he is well suited for his profession to be sure. In this case as in several other bets he has made (TGT, JCP) most recently he is wrong. The difference there he was a long investor and it is difficult to get attention promoting yourself and your position as a long position holder particularly when you may not be correct. On a short you yell "fire " and everyone runs to the exits. Maybe when people see that the smoke was Ackman's own exhaust they will return to the theatre and make him pay for this potential crime.
If and when the company survives these verbal attacks and I believe they will , the share value will increase again and then Bill will cover his position but he has invested more than money here. He has invested his reputation and his ego. At least one of those three are important to him. We will have to watch and see how he ranks them. I am guessing reputation is off the table. Is it ego or money Billy ?
Sentiment: Strong Buy
Ackman believes that he has handed the FTC and SEC an "Investigating MLM Fraud for Dummies" handbook that makes their work in re-investigating HLF an easy layup. Never mind the critical issues facing the nation that our political leaders cannot even agree on, Ackman believes Congress can be summoned to change the laws impacting MLM companies if HLF is not shut down. No one values Ackman's ego more than himself.
It would be interesting to know if his top crackerjack assistants drafted a decision tree chart analyzing the probabilities of various outcomes. It would have to be relatively simplistic as Ackman can see only one outcome, that being the shutdown of HLF. Only compulsive gamblers believe in sure things.
But if his 100% certain view of the world as Ackman sees it does not occur, his investors funds will be the first to go, then his reputation, again, just as in his early days. Ackman's delusional ego will be the last to go as he wonders why he cannot move the universe.
Sentiment: Strong Buy
What Ackman values most depends on what lessons he learned from the first hedge fund that he managed, Gotham Partners. That fund eventually became defunct as investors demanded their money back, worried over the speculative investment in a struggling golf course business. Ego appeared to be one of his biggest stumbling blocks then as it is now. Once again, he has made a speculative investment in his short of HLF, a short that Einhorn no longer supports. In the absence of any government intervention in HLF and with the pressure mounting from his JCP debacle, history may repeat itself with Ackman's investors demanding their money back once again. Whether Ackman attempts to manage any losses in a proactive manner will depend on how steadfast he remains in his highly self assured, riding it down to zero, short thesis on HLF. He has shown that he is willing to risk and lose other investors' money at the expense of his ego.
Very well spoken. He is short. Therefore he has an agenda. Anything he says will reveal extreme bias due to his short.He spreads half truths, untruths, distortions, and innuendos. All to get himself out of a jam. His self serving barrage of disparaging remarks has no credibility. I am surprised and dismayed that anyone pays any attention to his rantings.
Sentiment: Strong Buy