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Herbalife Ltd. Message Board

  • jkleaszr1 jkleaszr1 Feb 18, 2013 10:27 PM Flag

    Regarding HLF's earning call tomorrow.....

    Since they have already pre-announced them (more than likely to buy back shares on the open market to reduce float), they may discuss that they have secured an additional $500 million to purchase more shares. If they do not mention this or merely talk about the share repurchase with the current $1 billion marker, they may mention that they have been in early discussions with Icahn to help take the company private. Icahn does not want anything long term with this MLM company (in case Ackman's spotlight on how little distributors actually make starts to erode their future membership numbers and affects the bottom line). As I firmly believe that no other company would buy them, Icahn will instead extend them a line of credit at a nice interest rate ( I am laughing about 'nice'). I have no doubt that Johnson doesn't want to lose his gravy train and would rather go private to try and avoid the hassle.

    Remember that HLF is having their earnings release Tuesday and a conference call on Wednesday at 8am. That seems odd to me that they would have these on separate days. Perhaps something of importance is announced..........

    As far as Loeb having sold some of his long position recently and having had to tell everyone about it, he did do so on Friday or Saturday which may already be baked into the numbers (as he was the reason that the stock only went up fractionally on Friday ( he was selling into Icahn's news....).

    Sentiment: Hold

62.60+0.50(+0.81%)Oct 20 4:02 PMEDT