There is an interesting battle going on on this stock at the moment. I've been watching it develop and listening to a few opposing views.
Here is some background for you: -
Hedge fund mogul at risk of a short squeeze on Herbalife
http://www.theglobeandmail.com/globe-in ... le7564065/
Herbalife
-
superfrank
- Posts: 2762
- Joined: Fri Aug 14, 2009 8:28 pm
saw that on TV and it will be interesting to see how it pans out.
i remember the short squeeze on Volkswagen in '08 when the firm briefly became the most valuable company in the world before collapsing back to fair value.
Hedge Fund Managers in Tears as Volkswagen Triggers Short-Squeeze
http://www.marketoracle.co.uk/Article7075.html
i remember the short squeeze on Volkswagen in '08 when the firm briefly became the most valuable company in the world before collapsing back to fair value.
Hedge Fund Managers in Tears as Volkswagen Triggers Short-Squeeze
http://www.marketoracle.co.uk/Article7075.html
The Big Short War
Hedge-fund titan Bill Ackman has vowed to bring down Herbalife, the 33-year-old nutritional-supplement company, which he views as a pyramid scheme. With his massive shorting of Herbalife stock, the price plummeted, prompting two fellow billionaires—Ackman’s former friend Dan Loeb and activist investor Carl Icahn—to take the opposing bet on Herbalife. As the public brawl rivets Wall Street, William D. Cohan learns why, this time, it’s personal.
http://www.vanityfair.com/business/2013 ... -herbalife
Hedge-fund titan Bill Ackman has vowed to bring down Herbalife, the 33-year-old nutritional-supplement company, which he views as a pyramid scheme. With his massive shorting of Herbalife stock, the price plummeted, prompting two fellow billionaires—Ackman’s former friend Dan Loeb and activist investor Carl Icahn—to take the opposing bet on Herbalife. As the public brawl rivets Wall Street, William D. Cohan learns why, this time, it’s personal.
http://www.vanityfair.com/business/2013 ... -herbalife
I don't have a position on it, I know Pampered Chef quite well because it's part of Berkshire Hathaway, so this is an interesting watch.
Generally people are ignorant of corporate activity so I don't think it is likely to make much of a dent in Herbalife's business. Much in the same way that a lot of Betfair customer know nothing about the premium charge. So I'd be cautious shorting it.
Generally people are ignorant of corporate activity so I don't think it is likely to make much of a dent in Herbalife's business. Much in the same way that a lot of Betfair customer know nothing about the premium charge. So I'd be cautious shorting it.