No they aren't. They don't need to. They are completely covered in the convertible they bought without having to short any HLF stock.
HLF gets all it's stock to retire for EPS purposes today.
Banks are flat (as they should be and always are).
Hedge funds bought a risk-free convertible that they don't have to go out on the market and short shares on.
That's it. the buyback has occurred and is over, imo, with the exception of the capped call.
Yes, They are in full control,until they have to buy the shares they borrowed at a price between 80.00-90.00. Why do you think there is such a huge buyback? You won't be able to find the shares to cover your short,at least not cheap!
Sentiment: Strong Buy
I don't think there was too much institutional buying today. The volume just doesn't reflect it. Also, is there really a need to buy on the first day? If so then how much?
If they are spending $1.5B on buybacks over 5 days then that means they need to buy somewhere just north of 20 million shares. That's using prices at $65 and $70.
I think you'll see more buying towards the end of the five days, imho.
counterparties are buying next 4 days. did you expect the stock to rocket to 80 right now? no way. i think this will stay in high 60s until the purchases are complete. why should these guys buy in the 80s when they can load up in the 60s. i'm sure it is manipulated in some way to keep the cap on the price so they can buy. icahn might be loading up too. after the 5th day watch out.
I thought it was structured the way it was, so that not so many shares will be bought on the market. It reduces the outstanding shares in a way explained in the Bloomberg article, but the way it reads, one should not expect the full amount bought on the market.
Yeah, it certainly is not panning out the way I expected. It seems to me that there 'bigger' movements in play that are not transparent to us Joe Soaps. My consolation in being long hlf, is that stiritz, icahn etc are pulling the strings.