Your short brains have clearly fallen out. It costs $60-100 to be a member of Herbalife. How much does it cost to become a member of Costco? Is Costco a scam if you can pay for membership to get items at a discount and also a chance to sell them? Have you ever seen anyone go bankrupt from paying a $60 membership? Fools. Hey to all you idiot shorts. Go to Amazon and try and find Herbalife products. Yeah, it is real, with real reviews and real sales. Someone forcing people to buy on Amazon now? lol.
Your short thesis out the window.
Let me add a few more points as it seems the shorts on this board seem rather uneducated on the subject matter of doing research before jumping on the bandwagon shorting a stock.
This has probably been said before but seeing as how shorts have thick skulls it may bear repeating.
William P. Stiritz , Chairman and CEO of POST, former Chairman of Ralcorp before takeover by ConAgra foods - you know that delicious branded cereal you all eat in the morning - still holds at least 7 million shares of HLF from the last filing. He added to his position in Jan 2014, AFTER Ackman's lackluster presentation in Dec. He has been moving POST to depend less on the cereal business and into the nutrition products business. Guess what, HLF is a nutrition products business, that is why he was so bold as to argue he would do an LBO if it came to it. HLF fits his business plans quite well. You think you short smucks are smarter than Stiritz who has successfully doubled the pps of POST, on numerous boards like Nestle? You don't think he knows a scam when he sees one - a person that lives in that industry?
Soros still about 3 million shares in, Icahn over 16% ownership and acquired more shares at over $66.
sorry guy121345 or whtevr your name is your argument is just as bad as the shorts except they have the full power of the law on their side the feds are the law of the land not stiriz or icahn or even ackerman. At the end of the day the Govt saw something that made them look closer, so come on u thinnk they are stupid. this is the beginning of the end they will find something and make it STICK this is not a game. Ive learned a long time ago to do the opposite of what the big boys say to do, thye always get up on tv and lie just before the shtz hits the fan. believe they most likely already got out of hlf via dark pools and the other avenues available to them. They always win on a trade.
10 yr trader and ive seen it all.
There were many alternatives to short that had a much better chance of being a good trade, shorting biotech or cloud computing when they were at the highs, etc, but he had to focus on a company that had $44 in revenues per share, and then go heavily short at last years share prices. Now a year later they have to know it was not a good plan, but with a billion tied up, no way can they come out and admit that it was a dumb thing to do, and honestly say that all they are doing now is trying to save face with their clients and to salvage what they can.
I noticed these blathering shorts have nothing solid to backup any claims, except "trust me" and "i know" or "Ackman knows". And why only Herbalife is being targeted? Is it because Ackman has an interest and is pulling strings? Why not Amway? Surely if Ackman wanted to do good they would go after the biggest scam of all with over $9 billion in sales - double that of Herbalife. Oh he is such a good guy to pick a company he shorted to pull strings for investigation.
sorry guy121345 or whtevr your name is your argument is just as bad as the shorts except they have the full power of the law on their side the feds are the law of the land not stiriz or icahn or even ackerman. At the end of the day the Govt saw something that made them look closer, so come on u thinnk they are stupid. this is the beginning of the end they will find something and make it STICK this is not a game. Ive learned a long time ago to do the opposite of what the big boys say to do, thye always get up on tv and lie just before the shtz hits the fan. believe they most likely already got out of hlf via dark pools and the other avenues available to them. They always win on a trade. youll be the last to knw . they will hold this up and drop it really hard one day and wipe u rookies out.
by trust me i mean, the regulators can only let it go on if they don't look. They weren't looking because Herbalife was paying the politicians through lobbying, to look the other way, and none of the victims voices were heard.
Guess what happened. Somebody with some money (Ackman) came along and upset the balance. Lobbied politicians and got the victims in touch with the proper enforcement agencies.
The stories of all these government agencies swarming Herbalife are rumors. They are the beginning of the end. HLF's lawyers are going to be overwhelmed. Today the NY Attorney General announced a probe. He deposing whiteness. And #$%$ got the FBI involved anyway? You'd figure if it was just a pyramid scheme the FTC could handle it. Do you think the SEC or FTC found crimes and alerted the FBI? Seriously how did the FBI get there and why did they confirm the investigation with 9 news sources last Friday just to say they've been investigating and they will continue to investigate? Sounds like they want to see what some guilty people will do under the pressure and try to flip some witnesses. You tell me why they'd blow their secret investigation just to say they were continuing investigating?
See? It's bad. and I didn't want to get into it. It's past my bed time.
How much money comes from people buying the product (which is expensive and #$%$), vs how much money comes from recruits?
I know it's hard to tell because the people sold the get rich quick scam are forced to buy the product "to sell, or to sell to people to sell, or to sell to people to sell to people to sell" etc.
Then the company claims these people signed up to consume the product themselves at a discount.
Sentiment: Strong Sell
Herbalife's earnings come from selling suckers a get rich quick scheme. Costco's earnings come from selling mass quantities of goods people can use like food and TVs. They probably even sell Soy, MSG, trans fats laden diet shakes for much much much much much much less than Herbalife. Costco doesn't promise poor, uneducated people the life they always wanted and have them pay to create a job almost no chance of working out. Herbalife deceives desperate people to take their money and Costco provides a service. That's the difference and you know it.
The regulators can't look the other way now. I'm not going to get into why but trust me.
This is the beginning of the end.
Sentiment: Strong Sell