the SEC needs to change rules of short selling as some of these funds can literally manipulate stocks down by shorting huge % of the outstanding stock of a single company. The SEC needs to require any short that goes over 5% of the outstanding share base report it within 5 business days after they have crossed the threshold and limit any single short position of a company to no more than 10% in total of that companies outstanding stock. This would keep the huge amounts of money in single hedge funds from manipulating a companies stock and give investors proper disclosure.
Company road showing to institutional holders, Soros jumping into the anti crusade of HLF with major funding supporting MLM and HLF, HLF initiating major marketing blitz, FBI/SEC investigating Shorts manipulation of HLF stock........sure looks like a major short squeeze is about to drive HLF up big time!
overbought RSI has come down, ready to rocket up past the 200 day moving average around 44.96.
I like in the fact that HLF has hedged currencies going forward:
Settling concerns about currencies
Another issue that has plagued Herbalife and all U.S.-based companies is the strengthening of the U.S. dollar. Herbalife management told the Barclays team that in the upcoming quarter, they’re hedging all currencies. Some currencies, including the euro, they can hedge for longer periods of time. The purpose of hedging is to cut down on earnings volatility.
One of their hedging practices is manufacturing their products outside the U.S. For example, they manufacture all of the products they sell in China in China. The same is true for Europe and India. In Brazil, they manufacture 60% of the products they sell there. Herbalife is also building a new facility in the U.S.
Additionally, the company is trying to pay more of its operating expenses in local currencies. This initiative is not yet fully implemented. Also Herbalife raises prices only for local inflation rather than due to currency exchange rates.
Stock looks ripe for another run at 48.00 then into 50's
(Ralph Orlowski/Reuters)George Soros.A Washington-based advocacy group is accusing hedge fund managers of using "government processes" to benefit their firms' investments, Yahoo! Finance's Michael Santoli reported.
The group Citizens for Responsibility and Ethics in Washington is after Steve Eisman, who's campaigned to short some for-profit education companies, and Bill Ackman, who has publicly staked $1 billion shorting Herbalife.
The group claims the managers wrongly used government agencies to privately benefit their funds by urging regulators to investigate companies whose stock they are short.
Here's where it gets juicy: one of CREW's funders is a non-profit founded by hedge fund manager George Soros – who happens to own a major stake in the Herbalife (3.8 percent, according to a recent Bloomberg report).
If Soros has any involvement in the claims, it would not be the first time he and Ackman have gone head to head over Herbalife.
Soros took a stake in Herbalife, which sells nutritional supplements and weight loss products, after Ackman accused the company of running a pyramid scheme. The Pershing Square CEO has also accused Soros of stock manipulation and reportedly brought that complaint to the SEC.
Now CREW, which Santoli reports has received at least $800,000 from Soros' Open Society non-profit, is pushing back on Ackman's pyramid scheme claims.
But this is not the first time a hedge fund manager has alerted authorities to possible misbehavior and – benefitted from the result. As Business Insider's Julia La Roche pointed out, the recent Lumber Liquidators scandal is an example of how that can be a force for good.
And as Yahoo! Finance's Santoli notes, the battle to protect multi-level marketing companies and for-profit schools seems like an unlikely one for a usually liberal group like CREW.
Read the full story at Yahoo! Finance
setting up for another run over the 200 day moving average coming next week
SEC is giving hints that they are looking at Ackman as well, its about time they go after his "grey" area of manipulating stocks!
through their distribution channel. Icahn's ownership in HAIN and its performance is good case for their is a big market out there for health food and HLF distribution is good channel to sell lots more products through it.
If the CFO is touting that FTC is coming with no real action to institutional investors as he is on road show, HLF must have already been given verbal of that and is waiting for written form to make formal announcement, otherwise why would he be saying it...... along with spending for a massive advertising campaign starting this week......hmmm cards are about to be played......
add in the government now turning their attention on the Ackman and manipulation of HLF and you have the ingredients for a massive short squeeze in the 100's.
with volume expanding
lol, looks like your elevator is not working!