Monday, July 21, 2014

Herbalife's Last Stand: Ackman to Present "Pyramid Scheme" Presentation

Depending on how the Federal Trade Commission takes his investigation you might not have Herbalife to kick around anymore.

Hedge fund manager Bill Ackman said on CNBC today that he would give the "most important" presentation of his career on Tuesday when he unveils an investigation into Herbalife's nutrition clubs. 

It's Ackman's contention that the company operates as a "pyramid scheme" that targets lower-income individuals. He believes that regulators, specifically the Federal Trade Commission, will be persuaded to shut it down. Back in March the FTC launched an investigation in the company.

Too bad I didn't get short this thing when it was in the mid 60s. I have a feeling if this investigation is a "bomb-shell" as some people think we might get a trading halt tomorrow.


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