Companies and Brands

Herbalife Shares Continue Plunge

Nutrition Supplement
Thinkstock
Since calling Herbalife Ltd. (NYSE: HLF) a pyramid scheme a couple of days ago, Pershing Square Capital Management’s William Ackman has delivered a 342-slide presentation detailing his company’s view of Herbalife’s multilevel marketing business model.

Shares of the nutrition and weight-loss products company fell 12% on Wednesday, another 9% yesterday, and they’re off about 13.5% again today. Ackman claims that Pershing Square holds a short position in more than 20 million shares of Herbalife. That’s virtually all the short shares held in the company as of the November 30th.

By one estimate, Ackman has made a profit of $250 million on his short position in Herbalife, money he says will be contributed to charity through the Pershing Square Foundation.

For its part, Herbalife’s CEO denies Ackman’s accusations and the company has called a special analysts’ meeting for January 7 to rebut the charges. Forbes noted today that of nine analysts covering Herbalife, all have Buy or Strong Buy ratings on the stock. The January meeting is virtually certain to up the number of analysts covering the company.

Shares of Herbalife are down 13.7% today, at $29.09 after posting a new 52-week low of $28.76 earlier today. The prior range was $33.05 to $73.00.

A copy of Ackman’s slide presentation is available here.

Paul Ausick

Take Charge of Your Retirement: Find the Right Financial Advisor For You in Minutes (Sponsor)

Retirement planning doesn’t have to feel overwhelming. The key is finding professional guidance—and we’ve made it easier than ever for you to connect with the right financial advisor for your unique needs.

Here’s how it works: 

1️ Answer a Few Simple Questions

Tell us a bit about your goals and preferences—it only takes a few minutes!

2️ Get Your Top Advisor Matches

This tool matches you with qualified advisors who specialize in helping people like you achieve financial success.

3️ Choose Your Best Fit

Review their profiles, schedule an introductory meeting, and select the advisor who feels right for you.

Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.

AI Portfolio

Discover Our Top AI Stocks

Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.

You can follow him investing $500,000 of his own money on our top AI stocks for free.