Posts tagged 'Bill Ackman'

Changes at the Herbalife board

Carl Icahn, the largest shareholder in Herbalife with a 16.8 per cent stake, will soon have five seats around the boardroom table, according to the company:

Herbalife will nominate three designees of the Icahn Parties, Hunter C. Gary, Jesse A. Lynn and James L. Nelson, for election to Herbalife’s board of directors at its 2014 Annual General Meeting of Shareholders, currently scheduled for April 29, 2014 (“the Annual Meeting”).

Messrs. Gary and Lynn are employees of Icahn Enterprises L.P., and will be nominated for election to the Class I directorships currently held by Carole Black and Michael Levitt, whose three-year terms end at the Annual Meeting.

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Meet Dan Waldron, Herbalife millionaire

The latest dossier from Pershing Square has landed, and this time the Herbalife short campaign would like to draw your attention to a Dallas-based marketer of the nutritional-shake business opportunity.

Dan Waldron is a 30 year Herbalife veteran. He is affiliated with several businesses that have ties to Herbalife and has the broad smile of a self-made man when he poses for photographs with Michael Johnson and Des Walsh, chief executive and president of the multi-level marketing group.

More on Mr Waldron in a moment, but we thought it might be useful to explain where Pershing are going with all this. In addition to the lobbying battle, Bill Ackman and co are attempting to show a pattern of bad behaviour by senior members of the Herbalife hierarchy that might interest the US authorities. Read more

A few reasons to sell Herbalife

So Bill Ackman gave it one more concerted public shot. After spending a year of his life and half a billion or so of Pershing Square dollars shorting Herbalife, he might take a lower profile from now on.

Herbalife, meanwhile, has tried to turn the tables on the hedge fund, going active on the activist investor’s investors, according to Bloomberg. And a Belgian appeals court has reversed an early ruling that the company was pyramidical. So, victory to the bulls?

Not just yet. For a start, not everyone has got the message that Herbalife absolutely, positively, is not a pyramid scheme. Read more

The Herbalife buy case

This could be a four word post – Bill Ackman is wrong – but for reasons that we’ll explain here and in the next post, the future for the Herbalife share price is now subject to questions about the multi-level marketing industry as a whole.

What we want to do then, is share some of the reasons that we’ve heard for why people have bought the stock of a company that the Pershing Square activist has said is going to zero, and we think still has some serious questions to answer about its business model. Read more

California takes a small but important step towards the truth about Herbalife [updated]

Real life actual judicial opinion on Herbalife arrives from California. Click for the full document

It is only denial of a Herbalife motion to dismiss a suit from a former salesman, Dana Bostick, but there are some significant judicial thoughts that add useful perspective on what we have been reporting about the pyramid scheme case law as it applies to Herbalife. Read more

These are not the customers you are looking for, Herbalife edition

There is something weird about the way that Herbalife has been responding to questions about its customer base.

Faced with a barrage of scrutiny over the claims from Bill Ackman that it is a pyramid scheme, and as Herbalife has insisted that it is legitimate, it has turned to market research companies to show that it has plenty of real customers. Read more

That’s my answer and if you don’t like it… well, I have others, Herbalife edition

Who are Herbalife’s customers?

A fair question, yes. An innocent one, not at all. And answers came there… well many, actually. Read more

A herbal(-ife) high

Herbalife was having another good day in the market at pixel time.

If that picture could be conveyed aurally, that first plunge in 2012 would be the sound of analyst jaws dropping as David Einhorn appeared on the Herbalife conference call to ask three innocent questions… Read more

When Latinas attack: perhaps the strongest anti-Herbalife letter yet

There have been several letters this year to the FTC urging it to investigate claims that Herbalife is a dastardly pryamid scheme, from consumer groups, congress people and others. Most have leant on the arguments made by short seller Bill Ackman, but today’s from MANA, a National Latina Organisation, has some of the strongest and most specific language we have seen.

Herbalife claims it is both a product company and a business opportunity, but clearly this is a deceptive claim since the majority of Herbalife distributors make little or no income. According to Herbalife’s own 2012 data, 88 percent of their participants received no payments from the company at all. Read more

Spot the difference, Herbalife edition

This guest post is submitted by Dan McCrum, the FT’s US investment correspondent.

Hoisted from the web archives of the wayback machine, lets take a look at what 4u4meletsdream.com had to offer back in 2004.

In February it looked like this:

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‘erbalite

Much excitement on Wednesday on alleged news (via CNBC) that George Soros has taken a big stake in the much discussed food supplement business Herbalife. Here’s the auto-update chart on Wednesday. At pixel the price was up 7.9 per cent at $64.70.

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Ackman and Icahn will never be friends

In case anybody missed it, here’s Bill Ackman and Carl Icahn having some fun on CNBC. Seriously, seriously worth your time:

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A bit of post-Sohn naming and shaming

The 17th annual Sohn conference took place last May in New York and drew a star-studded panel of fund managers to offer (a few of) their best trade ideas.

Everyone was there, from David Einhorn to John Paulson and Bill Ackman. Topics as diverse as palladium, French CDS and Argentina’s sovereign debt were discussed.

But were the trade ideas any good? Read more