With all the aggravations in the last 5 months or so and now this it would be in the best interest of the company to go private. It is detracting from the business and may hurt their name even if it really has nothing to do with the their own personal accounting practices. Anyways I think it is the best bet so keep shorting and enjoy having them borrowed shares called and covered at a price you will have no control over.
According to Tim Ramey, "We estimate this process could take as long as a year – we guess HLF would be lucky to file their 2013 10-K on time. Given that there is no allegation of fraud or questionable accounting, we doubt the re-audit would be forensic in nature, but if it is, it will take more than a year."
Before today, I would have anticipated that Icahn would have wanted to execute his plan within this year at least. Depending on some of the unknowns and Icahn's soon to be board presence that will give him access to better information than the rest of us have, it would not be surprising if he did advocate going private sooner provided that he can help the company maneuver around the loan covenant issue that would restrict cash and stock repurchases. Of course, the unknowns are substantial. If, and I realize it's a big if, Icahn views these hurdles as surmountable, based on his age and interest in the overall HLS saga, he just might not want to delay his plan by a year or two. But that is anyone's guess. Once the one year lock up of his recent share purchases has expired, he may simply want to walk away (or if a loop hole exists in his contractual agreement with the current situation). I am long, but realistic. Still a lot of outcomes to be determined.
The way I read everything is that this has nothing to do with financial misconduct but has everything to do with "rogue" auditor giving information to a third party which may or may not have traded on. Don't see an issue with audited financials although a review will be done just because of the sensitive position he was in. What I want to know is Who Is this Third Party????
I think it is a very good thing to take HLF private now. It's undervalued and growing sales very well. I wouldn't be surprised to see this happen sometime after earnings later this month.