think logically smokey............, Ackman cannot just make 40% of his short disappear. Whether it is a derivative or not, the stock has to be bought back by somebody.
The stock could fall from here, because in the poker game that is being played one player has conceded that he has a weaker hand and the 'mother of all squeezes' (which is the reason a lot of speculators are long hlf) may not happen now?
I don't understand options stategies too well. However whatever way it works, if Ackman has hedged his short with options, somebody else must be at the other side of that trade? If ackman is buying puts (the option to sell the stock) then the other side is selling the option to sell. Does that mean that the other side of ackman's trade (if they did not already own the stock) will now be short? Sorry for the convoluted way of explaining my question?
at 72 bucks. The majority of posts on this board are rubbish-silly one line personal comments, so I don't log in very often.
There are arguments made for both long and short, but evidence points to something definitely brewing, on a takeover/short squeeze scenario. Icahn and Soros are speculators (as well as investors) and could probably
dump stock on a whim if they wished. However, it is the Stiritz involvement that gives me confidence in hlf going forward. He has invested 1/3 of his personal wealth, a huge amount. He either does see some good value in this company, or is being disingenuous and is only joining the icahn/soros camp for easy money, in whatever poker game may play out. If the latter is true I don't think he would be making comments like 'herbalife is a national treasure' or last week he said he 'as buying more at this level'. He seems to be very respected on wall st and if he were to turn around now and start dumping his stock his reputation would be blackened.
That's complete rubbish. These guys are all in this together and it not will of be a race to 'who will jump out of hlf first'. They have a well orchestrated plan in place and will have an exit plan.
Do you think that a man of Stiritz's calibre would have spent 300 mil on hlf if he thought that Icahn was so untrustworthy that he might sell the next day. Nonsense!
would be betting against Icahn, Soros and Stiritz. It is a s clear as day that there is something brewing here and they will not be the loosers!
Whether it is a buyout offer, which is unlikely, as I believe that most people believe in their hearts that it is not a good business model. This is a game of poker on a gigantic scale.
I cannot understand though how stiritz is going on about this 'national treasure' rubbish, or how he has become a distributor. Such nonsense! Maybe he is trying to fool people into believing that he is above this high stakes hedge fund poker game, when he is just on the train to make quick killing like Icahn and Soros.