The year is going Bill Ackman’s way especially when it comes to Herbalife Ltd. (NYSE:HLF) which seems to be in trouble, Karen Finerman said in a Pops & Drops segment on Fast Money aired on CNBC.
Bill Ackman, who manages Pershing Square, has long derided Herbalife Ltd., labelling the company’s business model as a scam.
“[Big drop for Herbalife] in a year that seems to be going right for Bill Ackman here, this is just an example. HLF put out earnings that were pretty disappointin on a number of fronts. [It was] not horrendous but they also talked about maybe a little bit less pressure on their sales people,” Finerman said.
Herbalife Ltd. declined a massive 21% at Tuesday’s close to settle at $44.26. It reported that for the third quarter of the year, it had a profit of $11.2 million, or 13 cents per share, down 92% compared to its performance for the same quarter last year.
Bill Ackman has been on the assault against Herbalife Ltd. since December of 2012. The institutional investor is not all talk, however, as he has an over $1 billion short on the stock. Bill Ackman may be in the black now as it is believed he made that short at $50 per share and the stock is now trading at about $41.
Karen Finerman said that though the stock has had a massive pullback and is now relatively cheap compared to its price in the recent past, she would not recommend people buy the stock.
Herbalife Ltd. shareholders includes Soros Fund Management headed by George Soros. The firm reported owning about 4.74 million shares in the company by the end of the second quarter.
