Herbalife: A Price target of $0

[Imminent]

Bill Ackman's Herbalife Presentation - Business Insider


We Have Never Seen Anything Like Bill Ackman's Dizzying Takedown Of Herbalife


Activist investor Bill Ackman, the CEO of Pershing Square Capital Management, gave an epic
presentation on his latest short — Herbalife. Ackman, who has an "enormous" short position,
believes the multi-level marketing company that sells weight management and nutritional
supplements is a pyramid scheme.

He also has a price target of $0 and believes the company is going to fail.
The Pershing Square team spent the last year doing research on Herbalife.
It definitely shows because Pershing Square put together an extremely in-depth 342-slide
presentation. The presentation was given at a special Sohn Conference event in Midtown
Manhattan today and it lasted for three hours.
Following the news that Ackman was short, shares of Herbalife fell $5.16, or 12.14%, to close
at $37.34 a share yesterday. That was before he gave he thesis.
After his presentation today, the stock fell $3.64, or 9.75%, to close at $33.70 a share.

See Ackman's tremendous presentation in the slides that follow at the link.

Read more: Bill Ackman's Herbalife Presentation - Business Insider





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I could never understand why people went for this product but then again most 'health' foods or supplements out there are the same.

[kingwilly]

Gee, that's a surprise, Herbalife a pyramid scheme, whoever would have thought?

[sabang]

Just another Mormon controlled pyramid scheme company. Mormons believe business is some godly pursuit apparently (mainly because you give 10% of what you earn to them as tithe) so if you can, say, persuade suckers to part with $36 bucks for a bottle of fruit juice**, you are doing 'Gods work'. God is a Hebrew merchant, apparently.

** true story- 'Tahitian Noni juice'. Now someone else (also mormon) is trying the same scam with dragonfruit juice. Cures everything, apparently.

[Imminent]

If it is mormon they probably made loads from it. That 10% scheme they have going probably adds up to much more than 10% as I bet they encourage mormons to buy from mormons. Maybe my math is wrong but it seems like it would compound.

[Butterfly]

I could never understand why people went for this product but then again most 'health' foods or supplements out there are the same.

don't underestimate the stupidity of people,

that's why all those things work, Bill Ackman might go broke in that short if he thinks market are reasonable and can price shares efficiently based on his proprietary research

[wasabi]

Herbalife has been around since the 1980's. I was invited to dinner by a hot Bible basher J.W tart and I was so naive I thought she fancied me. Her motive was to enrole Me into her pyramid schemeing ways ,enslaving me into Herbalife.Her dinner date had alteria motives. Stay away from pyramid schemes,and cleopatra.

[socal]

I could never understand why people went for this product but then again most 'health' foods or supplements out there are the same.

don't underestimate the stupidity of people,

that's why all those things work, Bill Ackman might go broke in that short if he thinks market are reasonable and can price shares efficiently based on his proprietary research

Sounds like you are learning from experience..

Kyle Bass took a bold step shorting Japanese debt recently..

[Butterfly]

The Japanese current situation is quite interesting and definitely a school case of a dysfunctional system

I wonder if their new policy is going to be effective after being stuck for so long in a liquidity trap, it might actually work and give us the path to resolve our similar situation