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Robert Chapman of Chapman Capital Says Ackman's Claims on Herbalife Will 'Fail'
Posted by: Dheeraj Grover (IP Logged)
Date: January 11, 2013 09:26AM

Now a known investor, thanks to his long bet on Herbalife (HLF) pitting him against Ackman, Robert Chapman of Chapman Capital was on Bloomberg to discuss his long position in Herbalife, which he established after Ackman announced his short. He thinks that Ackman's claim that Herbalife is a pyramid scheme will "fail" and he will feel a big short squeeze.

-- Ackman will feel a big short squeeze on his Herbalife position.
-- He thinks there is very little risk of regulatory action on Herbalife.
-- SEC starting a preliminary probe into Herbalife does not change his opinion at all.
-- Herbalife is a three-decade-old company, has a solid product and has distributors who are interested in buying and marketing Herbalife products.

Credit and source: Bloomberg,

Here is the video:

Guru Discussed: Bill Ackman: Current Portfolio, Stock Picks
Stocks Discussed: HLF,
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