Ackman Lays an Egg in Herbalife "Deathblow"

I guess it was just too good to be true because if you were short Herbalife you got pounded.

Shares of Herbalife rose steadily in the morning after Ackman started giving his talk on Herbalife’s nutritional clubs, increasing by 8% to $58.40 in the first hour of the presentation. Two hours into the talk the stock had risen by 11% to $60. That’s a little higher than the shares were changing hands for on Monday before Ackman drove down the stock by 11%, saying he would be delivering “the most important presentation that I have made in my career.” Ackman had promised in a CNBC interview on Monday that “we won’t disappoint.” Ackman’s presentation was still going on at 1:07 p.m., with the stock up by 15% to $62.22. During the presentation, Ackman suggested that Herbalife had been repurchasing shares in a material way on Tuesday. Shares of Herbalife continued to rise after the three-hour presentation ended, closing at $67.77, up 25% for the day.

I guess it would be up to the FBI and the FDA to look into the claims and release their rulings. In any case the stock is about the same price it was before the "deathblow" was being attempted. I guess if you believe the company is a scam it would be a good place to go short. If not there is a triple bottom in the stock and it will probably go up for a while now.