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CanadianValue
CanadianValue
Articles (4624) 

CNBC Interviews Analyst with a Buy Recommendation on Herbalife

December 20, 2012 | About:

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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CanadianValue
http://valueinvestorcanada.blogspot.com/

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GuruFocus has detected 3 Warning Signs with Herbalife Ltd $HLF.
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