Sunday, December 23, 2012

Herbalife and Ackman

The day started off with me salivating :D

Bill Ackman v/s Herbalife

Bill Ackman says that Herbalife is a pyramid scheme, and hence it is illegal and it will cause substantial losses to many people. He has gone on to say that this is the highest conviction he has ever had in any of his trades...

This is Ackman on Bloomberg TV talking about Herbalife

And this is the website that Pershing Square has created to throw some light on Herbalife

This is Herbalife's CEO's rebuttal of Ackman's accusations

I love what the US allows :)
Unlike what has been happening between Olam and Temasek and Muddy Waters on the other side, where there was a lot of national ego wrapped around the issue, the US has always been a gun-slinging state where the truth tries to prevail, where there is adequate freedom of speech and the capitalist machinery is well-oiled.

I am waiting for how this is going to end :)


Addendum:
Bronte Capital wrote about this and says that he believes Bill is right but Herbalife will over-power Ackman and hence Bronte is long (for now).

"For a short-seller who is as risk-averse as me watching this is pure hedge-fund porn."



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