1. The company has ample capacity, will and venom to use leverage to mash out the naysayers. Davidson's analyst has published that PWC back audit and a $2B leveraged buyback program will be announced before the end of September (that would be Monday friends):
Herbalife Stock Hits New High As Ackman Endgame Near
09/17/2013 02:26 PM ET
Herbalife (HLF) shares shot up to a new high as growing expectations for a share buyback put the ongoing fight with activist investor Bill Ackman closer to a possible endgame. D.A. Davidson, which has a buy rating on the nutritional and weight-loss products company, expects Herbalife to launch an aggressive leveraged buyback when it reports audited financials later this month. Earlier this year, Herbalife hired PwC to audit its financial statements after KPMG resigned due to insider-trading charges by one of its auditors. And a repurchase — seen at $2 billion for $75 per share — could quiet down short sellers like Ackman.
2. Elementary valuation metrics (P/E ttm and ftm, PEG, operating margin vs broad market) make it obvious the stock merits a premium valuation yet,despite stock progress since early 2013, it continues to trade at a discount to SP500.
3. As Stiritz's recent entrance makes obvious, It is VERY early in this growth story. Independently the company has a very long runway in China (recent expanded marketing authority from the chinese health ministry), Brazil (50% growth yoy and just getting going), Mexico (long a huge market for HLF and yet still growing in a major way), still high teens growth in the U.S., and the ROW markets all open for business for HLF expansion from baselines.
4. Ackman's tactics to discredit the story and products have failed, but so what. Others have tried previously to put this company's future in doubt only to be proven wrong by the continued, steady progress of this high quality, committed management team and BOD.
Our PT was recently upped to $90 by EOY.
15 Quarters in a row of record EPS and expanded ebitda, and share repurchases likely exceeding 15% now since Ackman's ill-fated bs wolf crying and whining to the SEC and lemmings following him off the cliff. And this quarter we should also begin to see the effects of expanded authority to distribute product in new regions of China. Then we have Brazil cranking 50%+... still very early in this story.
Enjoyable to think that management is out to fry the short morons here.
Hee, hee, hee..
Do you mean intellect like a vocabulary full of, " MF, terrorist, prosecute, criminal, hang them, blah, blah, blah ", drool, Ack!
Sentiment: Strong Buy
If not obvious, the chart pivot at $75 is precisely where Davidson's analyst, the guy closest to management of all the street analysts and who has been right all along on the stock, suggests the floor for the coming $2B or so leveraged buyback program will be launched. Do anyone will a brain (so that excludes all the old and new putzes posting negative dog s here dozens of times per week LOL) think it isany coincidence that the stock has traded in channel fashion prior to this announcement and what will be outstanding Sep Q results?
Be ready friends, the announcement is imminent.
'squeezetracker' - - Just a little tip: Please don't use all caps in your titles. I almost failed to see your _excellent_ post because I thought it was one of those an all caps post from Pakistan or something!