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CNBC Interviews Analyst with a Buy Recommendation on Herbalife
Posted by: CanadianValue (IP Logged)
Date: December 20, 2012 04:12PM
I would not trade places with this gentleman at this point in time. Let's give him a chance to dispute Ackman's short thesis. Here are his main points (it gets a bit testy with Herb Greenberg):
- He is not swayed by Ackman's presentation
- He believes Ackman is defining royalties and overrides in a manner (as a pyramid scheme) that is not accurate.
- In his opinion the royalties and overrides are generated on percentages of real sales and this is not a pyramid scheme.
- He thinks the research referenced by Ackman involved an insignificant amount of product and is not reflective or enough evidence.
- Ackman misses the point that Herbalife is also a service that helps users/members achieve their weight loss goals.
Guru Discussed: Bill Ackman: Current Portfolio, Stock Picks
Stocks Discussed: HLF,