Well said, you guys. It is a bit like stud poker -- the next two cards will determine the outcome -- First card to come: earnings ... second card to come: FTC ruling. ...and one side will take the pot.
Thanks, tex -- just read it... and yes, I agree with you skeptics that this recent ruling was no sweeping testimonial to the company's innocence. Nevertheless, it was a nice win and an indicator of the flimsiness of self-interested accusations against the company. I feel good about my investment and the prospects of further (dare I use the word) vindication.
Hi Kravin - I'd like to read the federal judge's actual ruling but I haven't yet. My assertion that this "win" (Bloomberg's word) is a vindication of the company's model stands based on all press interpretation's of the ruling and quotes from it. A federal judge heard the complaint that HLF runs a pyramid scheme and dismissed it. That's just fact. I suppose other, counter-rulings are still possible but as of this ruling less likely.
On the related issue of the Chicago City Council promoting an investigation of Herbalife, If true, I find that par for the course from the completely inept, corrupt politicians who run that city -- and who have no regard for the poor people of Chicago. Look at the schools and crime rates -- and also, more pertinent, look at the rates of obesity. Is it surprising that Herbalife "targets" Hispanics, given statistical evidence that African-Americans and Hispanics have higher rates of obesity? Why should the Chicago elders care for their constituent's health any more than they care for their education or safety? It's just another example of political influence marshaled on the side of powerful short-selling interests.
On a final note, I guess because I recently invested in HLF I'll be called a "cultist" by this board's gaggle of comically bitter short sellers (I love their juvenile use of "lol" every time they make a snide comment... giggling to themselves at home in their frayed undies). But I'm actually a free market capitalist who is taking a financial risk on the stock's likely surge when the FTC rules in its favor -- not a certainty by any means but, I hope, a likelihood -- which will result in a healthy ROI for me.
I'm guessing "moron" was meant for me. Good to know what sort of shmuck is spewing opinions here. I'm now very glad you added to your short position because I think you'll lose more money.
Just to explain something to you: It's not that the judge ruled that HLF is not a pyramid scheme.We see your brilliant insight on this. The relevant point is that the judge looked at the facts underlying the plaintiff's lawsuit - and found that the Company had been open about its practices and risks to investors. It's just one more affirmation of the Company's legitimacy -- one more victory in a battle against name-calling dirt-bags like you.
go for it. My guess is that today's ruling foreshadows rulings to come, scares you and will keep you from acting on this "excellent time to short." Are you going to add to your short position today?
Bloomberg headline: "Herbalife and Its CEO Win Dismissal of Pyramid-Scheme Lawsuit" ... You can parse the ruling's language all you want -- but it's a "win" in fact and in principle and a solid vindication of the company's model.