The Ultimate Bull vs. Bear Fight: Herbalife
Investors can't often say that the most can be had just by watching a stock from the sidelines -- regardless of whether the price surges or sinks. In the case of one particular stock, it's a given that the stock will climb or fall; the shares will not sit still. That stock is Herbalife (HLF), a seller of nutritional supplements through its own network marketing channels.
Herbalife first came to the forefront several months ago when hedge-fund manager David Einhorn questioned the company's marketing practices on a conference call. Shares dropped. Several weeks ago, activist investor William Ackman of Pershing Square Capital Management, in his trademark style, presented a 330-page slide show in which he essentially called Herbalife a "pyramid scheme." Ackman revealed that he was short around 20 million shares, close to a billion-dollar trade. In response, shares fell by about a third to around $27 from nearly $40 in a manner of days....441 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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