Companies and Brands

Bill Ackman and Pershing Square Keep Up Fight Against Herbalife

Bill Ackman may have seen Herbalife Ltd. (NYSE: HLF) rise more than handily after the initial tank after his short sale position was disclosed, but his Pershing Square is not letting up on his short-selling campaign against what he thinks is a pyramid scheme. At the Facts About Herbalife, the landing page even states:

“[T]he organization is deemed a pyramid scheme if the participants obtain their monetary benefits primarily from recruitment rather than the sale of goods and services to consumers”
— Dr. Peter J. Vander Nat, senior economist at the FTC, Journal of Public Policy and Marketing, Vol 21-1, 139-151, (2002)

Today the company has issued its 13-page Executive Summary of the Ira Sohn Presentation. The summary is titled “Who Wants to be a Millionaire?” The summary says Herbalife is a pyramid scheme as its distributors earn more than ten-times as much from recruiting as they do selling their overpriced products to bona fide retail customers. The rest of the summary is here.

Herbalife shares closed up almost 5% in Tuesday trading and the 52-week trading range is $24.24 to $73.00. This stock closed out 2012 at $32.94, but shares were around $42.50 on December 18 (a day before the short selling position was disclosed) and the stock hit its yearly low of $24.24 on December 24.

Are You Ahead, or Behind on Retirement?

If you’re one of the over 4 Million Americans set to retire this year, you may want to pay attention. Many people have worked their whole lives preparing to retire without ever knowing the answer to the most important question: am I ahead, or behind on my goals?

Don’t make the same mistake. It’s an easy question to answer. A quick conversation with a financial advisor can help you unpack your savings, spending, and goals for your money. With Zoe Financial’s free matching tool, you can connect with trusted financial advisors in minutes. 

Why wait? 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.