A
clip from CNBC yesterday - The Federal Trade Commission has opened a formal
investigation into Herbalife (HLF)'s operations Wednesday, pushing shares of
the nutrition and weight loss company sharply lower. The shares of Herbalife
plunged as much as 15 percent after being temporarily halted but gradually
recovered from lows and the company said it will fully cooperate with the FTC,
saying it "welcomes the inquiry given the tremendous amount of
misinformation in the marketplace."
The
real gun fight is between hedge fund manager Bill Ackman who accused Herbalife
of breaking direct-selling laws in China, its fastest-growing market -
and back in December 2012, Ackman raised allegations that Herbalife was a
pyramid scheme and made a bet the stock would fall by selling the shares short.
Billionaire investor Carl Icahn on Monday said he believes Herbalife is
undervalued and said he is satisfied with the company's re-audited results.
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