Bill Ackman has received a lot of criticism for publicly disclosing his short bet against Herbalife (NYSE: HLF).
Most recently, Josh Brown (in a piece that’s actually favorable to Ackman), writes that he didn't agree with “the flamboyant rollout of his short position in Herbalife.”
Brown is missing the point.
Every time a member of the press mentions Ackman’s Herbalife short, his case gets stronger. Although investments more »
It’s not that easy being Bill Ackman.
Whether it was calling out Herbalife (NYSE: HLF) as a “pyramid scheme” or spinning off Tim Horton’s (NYSE: THI) from Wendy’s (NASDAQ: WEN), every big move he’s done has been under the microscope. Now that he has announced that he will leave JC Penney’s (NYSE: JCP) board of directors, following some of the men he brought with him more »
George Soros, the man who famously broke the Bank of England on Black Wednesday, earning more than $1 billion in profit on the trade, has been rumored to have taken a large stake in Herbalife (NYSE: HLF). In my opinion, this is a move on Soros's behalf to try to ignite a short squeeze in Herbalife shares.
Short interest in Herbalife currently stands at more than 30 million shares more »
A few months back, in May, I wrote an article targeted at newbie/novice investors who were looking to enter stock markets this year. We are in the fourth year of the current bull run and markets are making new all time highs. Most of the easy money has already been made and the only way to make money in this market is by bottom up stock specific investments.
I more »
Bill Ackman's Pershing Square Capital Management had $13.3 billion in assets at the end of 2012, but could come apart at any moment. You can help.
Fact is the hedge fund is stuck with two very bad bets, on which other hedge funds have taken the other side, meaning that basically the fundamentals don't matter in either case.
The JCPenney Long
Ackman's bigger problem is JC more »
I have a confession to make: I fell for the lure of a network (or multi-level) marketing company. Though at first it sounded totally implausible, it became less so after I heard the tenth story of how someone quit their job as an accountant because she is selling Mary Kay or Arbonne at a break neck pace. I figured with such a small startup cost, it was worth a try more »
Hedge fund legend Carl Icahn is reportedly part of the original inspiration for Gordon Gekko, the ruthless antagonist in the 1987 film Wall Street. Like Gekko, Icahn is known for his corporate activism, financial acuity, and great wealth. Without further ado, here are three companies that Carl Icahn really likes.
The multilevel marketer
Recently, Weight Watchers International (NYSE: WTW) has plunged as much as 20% in one trading day to around $38 per share. The significant share price drop was mainly due to the sluggish outlook for the full year. Moreover, its CEO David Kirchhoff decided to resign, and he would be replaced by the new COO James Chambers. Should we avoid Weight Watchers because of the not-so-good news? Or does the market more »
There are few stories circulating throughout the financial media garnering as much attention as the ongoing battle between hedge fund managers Bill Ackman and Carl Icahn. Both investors have set their sights on nutritional supplement maker Herbalife (NYSE: HLF). The company, which utilizes a multi-level marketing construct to distribute its namesake weight management and sports nutrition products, has had its very legitimacy called into question by Ackman.
In the wake more »
I have a confession to make: I fell for the lure of a network marketing company. Though at first it sounded totally implausible, it became less so after I heard the tenth story of how someone quit their job as an accountant because she is selling Mary Kay or Arbonne at a break neck pace. I figured with such a small startup cost, it was worth a try. What I more »
Wednesday was a big day for activist hedge fund manager Bill Ackman. Unfortunately for him, it wasn't particularly good for his portfolio.
Shares of retailer J.C. Penney (NYSE: JCP) plunged late Wednesday after The New York Post reported that CIT had stopped financing the company’s small manufacturers, while Herbalife (NYSE: HLF) surged on reports that George Soros had taken a stake.
“J.C. Penney is having credit more »
When people hear about a 2 billion dollar Bill Ackman position it’s elevated to the next “pump and dump” scheme. Some investors will buy the stock just because Bill Ackman bought the stock, and will try to sell the stock before Bill Ackman can.
What’s the deal with Air Products & Chemicals?
Upon first examination, this has got to be the most boring company any high-profile hedge fund manager more »
Not many companies have been surrounded by more controversy over the past year than Herbalife (NYSE: HLF).
As you might already know, billionaire Bill Ackman bet $1 billion that Herbalife stock would fall, based on the theory that Herbalife was a Ponzi scheme. Billionaire Carl Icahn felt strongly that Ackman was mistaken, and he bet big on Herbalife's stock appreciating.
While this battle is far from over, so far more »
Sometimes, truth takes some time to emerge. This is what Bill Ackman, the founder of Pershing Square Capital Management, says about two of his high conviction investment ideas that, so far, have gone sour. Ackman built a long position in J.C. Penney (NYSE: JCP), which is down by 17% Year-To-Date (YTD), and a huge short position in Herbalife (NYSE: HLF), which is up by 69% this year. Mr. Ackman more »
Billionaire Carl Icahn was at CNBC's Delivering Alpha conference last week to tout his top ideas. Of course he had a few choice words about his latest activist campaign involving Dell (NASDAQ: DELL). But he also reiterated his buy theses on his other favorite stocks, including Netflix (NASDAQ: NFLX) and Herbalife (NYSE: HLF).
Icahn had this to say about the Dell saga: "I've been through a lot of more »
As John Maynard Keynes used to say "in the long run we are all dead". That said, sometimes truth takes some time to emerge into the light of the public. This is what Bill Ackman, founder of Pershing Square Capital Management, says about two of his high conviction investments that, so far, have gone sour. He has built a huge long position into the discount retailer JC Penney (NYSE: JCPmore »)
Unfortunately, Hempton did nothing of the such. His argument against Ackman’s thesis is built on a faulty premise, and he fails to disprove the claim that Herbalife is a pyramid scheme.
Hempton: why Herbalife is not a pyramid scheme more »
Avon Products (NYSE: AVP) is selling its Silpada jewelry business. The company's revenue has been at a virtual standstill for around five years, with earnings heading lower and lower. Taking the loss on the jewelry business is a good step, but more is needed.
A good story
Avon is one of America's great stories. The direct selling model grew quickly in this country and then expanded overseas. Today more »
Herbalife (NYSE: HLF) remains embroiled in a widely-publicized stockholders fight that started unfolding at the end of last year when activist investor William Ackman charged that Herbalife’s agreements with distributors represents a pyramid scheme. Repercussions from these entanglements sent Herbalife’s stock plummeting from $43.94 on December 14, 2012 to $26.06 just ten days later.
However, other companies have faced even more challenging litigation and managed to more »
The weight-loss industry is big. In the United States alone weight-loss companies record about $20 billion in annual revenue, and at any given time over 100 million Americans are attempting to diet. Weight loss systems come and go, with many proving to be ineffective at best and dangerous at worst. But Weight Watchers (NYSE: WTW) has been around for decades, watching fads come and go as it has grown into more »
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