They are written by idiot shorts or short wanabee. Two of them is Matt Stewart and Quote the Raven who are supposedly deep underwater with their short. There has to be a gazillion of articles about how terrible the business model is while the business is real and growing with the best of Wall Street on the long side. Maybe if they write enough SA articles, it will help to pay for their underwater shorts. So they have to write xxx articles to have enough money to cover (eventually) and to avoid margin calls. It's pathetic. Even their favorite hedge funder has covered 40% of his shorts and bought put to hedge most of the remainder. So the squeeze is already half complete. The only left is for Herbalife to get its due valuation which is north of 100.
I've been trading some other stocks this last few months. But now I'm back long today buying the dip after the Belgian court clearance. Icahn has said time and time again that Ackman and other has no case because he got no legal opinion on the matter and the firm he used has no experience in MLM litigation. If he believe Ackman got no case, Herbalife is still growing strong, and the the market is still scared of buying. Than he will continues to hold. He's still holding Netflix (half) after it went up 5x. This is one of his better investment. It was $73 one and a half year ago, with 20% growth, the fair price should be $90. If you factored in growth, than it should be over $100. I don't know if you want to sell short a company with continuous guidance raising and just got cleared by the court and has over 30 years of litigation experience. I believe some of the "not so secret" success of Herbalife is coming from the constant coverage by the news media thanks to guys like Ackman and Herb Greenberg. The more they talk about Herbalife, the more exposed their flawed argument is to the public. Icahn has made so much money this year, he'll let this one run just to play with Ackman.
Trading at discount to other MLM companies. Not baked in. Clearance by Belgium court, still not fully baked in. Still growing 10+% per year. Not baked in. Tender offer. Not baked in.
Bought the dip at $74 and $73 today. Haven't been trading this for some time but I believe that it's under priced because of the Ack.
Nuskin PE =27 price 132
Herbalife PE = 16 price 76
Will need to get to $130 to be in the same valuation and market cap as Nuskin. It was being held down in the past by pyramid allegations, now that they're being exonerated by one court so far, there will be a lot to catch up. 100 by early next year is not too far fetched. With good earnings we will surely see $130.
Banks shenanigans at its finest. Banks got whiff of the German clearance last night, told their jr analysts to start pulling all-nighter putting up upgrades and fresh client recommendations. Presto, we got fresh set of bag holders and scared shorts. Banks/clients sold into strength, we still have a bull market so everyone is still happy including the bagholders. 2013 in a nutshell. Come 2014 and beyond...it will get very interesting.
All investing is speculation. The only different is the time frame and the risk/reward level. Let say you're buying/shorting ______ you're still speculating that it will go up/down in ____time frame because of ______ and you understand the risk is _____. The key is always basing your decision on the circumstances not your opinion. I shorted and long Tesla in the past for quick trade and has done okay but now I'm getting ready to go long.
Instead of the scenario of 2011 Netflix, we're getting the 2013 Netflix scenario after Q3 earnings type of bounce. Momentum is incredible. This is the ultimate speculating stock bar none. I bet this could run all the way close to the old high especially after it clears 50 DMA. No position yet, but looking to come get some on the long side. The amount of bullishness in this market is just simply amazing.
That's very suicidal. Been there done that. This is an intermediate trend reversal. Look like you're holding on for dear life waiting for bad news.
It's free money basically if you know how to trade, but to call this as an investment is an insult to any sane market participant.
Don't think the fire/safety business got much to do with this jump, maybe some. It's mostly the big boyz pumping to create new bag holders (so they wouldn't be) & squeezing the shorts. Give it time, this rally will died out and we're back to square one. SMA 50 OR 160 is a spot to short if they do pump it back up that high.
Might briefly dip below the 200 EMA, like I said potential strong support at 100. If that fail than god forbid....For all intent and purposes, the combustible engine is still the most cost effective and efficient machine out there. I don't believe in the big oil manipulation of green tech BS.
Tesla will go down regardless of what the market does. There are cracks in the fundamental story that is a huge red flag for any momo stocks. Maybe to 100 it might catch a bid? Look what happened to Netflix 300 to 60 in one year in one year and back to 300 in another year. You could see that very well see it in Tesla. Musk is a smart guy but the market was just expecting too much.