# Herbalife



## Uranium101 (Nov 18, 2011)

Who wants to make some blood money by shorting it?
I would never short because the up side is only 100%, but the downside is unlimitted.

However, with Bill Ackman on your side, shorting it is a no brainer.
I would short, but i wont simply because it is blood money. I will have nightmares knowing that.


----------



## GoldStone (Mar 6, 2011)

Bill Ackman pledged to donate all his profit from Herbalife short to charity. He called Herbalife *business* blood money. Ackman's 3-hour webcast is fascinating (in a geeky kind of way).

http://factsaboutherbalife.com/

I'm not going to short for a few reasons:

1. Herbalife is a very aggressive litigator (similar to Scientology). They will drag Ackman in court.
2. Herbalife spent tons of money cultivating political support.
3. Given #2, it's not clear how aggressive US regulators will be in this case.


----------



## Uranium101 (Nov 18, 2011)

GoldStone said:


> Bill Ackman pledged to donate all his profit from Herbalife short to charity. He called Herbalife *business* blood money. Ackman's 3-hour webcast is fascinating (in a geeky kind of way).
> 
> http://factsaboutherbalife.com/
> 
> ...


I didn't buy into this (short HLF I meant) is not because of the reasons you've stated.
I simply can not get over myself for doing it.
It is like taking money from people. There is like no downside risks.
it is obvious a fraud.


----------



## Addy (Mar 12, 2010)

Why the huge stock price drop around May 1st from a 52 week high of $73? I can't find any news around that time that indicates the reason.

EDIT: On further searching I found the likely reason on various current articles, example here: http://seekingalpha.com/article/1086621-herbalife-value-pick-or-short-candidate


----------



## Uranium101 (Nov 18, 2011)

hedge funds were shorting it.
Around Dec 21, they could find shares to borrow to short. now the bounce back lol.


----------



## 44545 (Feb 14, 2012)

Uranium101 said:


> hedge funds were shorting it.
> Around Dec 21, they could find shares to borrow to short. now the bounce back lol.


On Googling, I found this: 
http://www.forbes.com/sites/igorgreenwald/2012/12/22/why-ackman-is-right-on-herbalife/

Interesting stuff. (to me at least )


----------



## Uranium101 (Nov 18, 2011)

have you guys even watched the 3+ hours presentation by Bill Ackman and his team yet?


----------



## Addy (Mar 12, 2010)

Uranium101 said:


> hedge funds were shorting it.
> Around Dec 21, they could find shares to borrow to short. now the bounce back lol.


Is this in reply to my question?


----------



## Addy (Mar 12, 2010)

Purchased 100 shares just for fun. Not sure what point to sell but I don't anticipate holding them long.


----------



## Addy (Mar 12, 2010)

Addy said:


> Purchased 100 shares just for fun. Not sure what point to sell but I don't anticipate holding them long.


Sold them today, bought 100 at 34.26 last week, sold them for 38.10 plus x2 $9.95 trade fees for a total of $360.00 or so. I'm down in my portfolio due to a stupid move on ZNN a while back so I'm just trying to cushion it back up.


----------

