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Forum List » Guru News and Commentaries Guru News, Stock picks and commentaries
CNBC Interviews Analyst with a Buy Recommendation on Herbalife
Posted by: CanadianValue
(IP Logged)
Date: December 20, 2012 05:12PM
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.
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