Interesting discussion with Chapman even though he exited his HLF position. See following link. http://www.forbes.com/sites/ericjackson/2013/02/15/straight-talk-with-robert-chapman-on-herbalife-bill-ackman-and-carl-icahn/?partner=yahootix
In the article Chapman talks out both sides of his mouth. He states the case why Ackman is wrong, but says that some state regulator or AG (Ackman knows quite a few.) may take the bate. Then he says that taking the bait will be like political suicide because the case is bogus.
He says that King Carl is the best investor of our time, but he bails on his own position waiting for the stock to get hammered when a regulator takes the case.
So you have Loeb dumping some of his position and Chapman dumping. The only two steadfast players in the game are Ichan and Ackman.
Ichan announces his position, and the shares soar in high volume after hours Thursday and premarket Friday only to settle into the close on the 50 DMA.
I don't believe a regulator will touch this. Why? The products are not dangerous, and there's product being sold. It's not like big tobacco which everyone knows unhealthy. It's not like Microsoft when they were accused of being a monopoly years ago. What political advantage would anyone have for pursuing Herbalife? No obvious reason. Ackman just wants to get rich and beat Ichan.
I don't know about you, but when I invest on aggression, I get hurt.