Herbalife

Hi Anatta,

I have been following this and Ackman has his reasons for calling out HL...he has a HUGE short position on these stocks and guess who will benefit if they go down? i have no horse in this raise but it's not a clear cut pyramid scheme like the others..

You guys know that Julian really doesn't like HL.

Ashard Deen

Agreed. It is clearly stated in the Bloomberg article that Ackman's fund shorts 20 M Herbalife shares, so his fund could have earned 250MUSD if buying back in time.

However, it also mentions a decision in Belgium court deemimg Herbalife an illegal pyramid scheme, so it is not only Ackman who is saying sth is wrong there.

Agree it is a dogy stock to own!

Anatta wrote:

so his fund could have earned 250MUSD if buying back in time.

Oops, wrong math. 500MUSD (half a billion!!!) not 250 MUSD.

Herbalife has always had problems with accusations of pyramid selling being one of the earliest.

In VietNam they have been using 'trainers' to sell the products, rather than Vietnamese. In TP HCM the trainers live in apartments they share on Le Thanh Ton, near the Lancaster building, in the Japanese restaurant area.

The trainers are from Singapore and Malaysia.

The main office of Herbalife VN is near the Co-Op in the Vo Van Tan road area.

Jaitch wrote:

The main office of Herbalife VN is near the Co-Op in the Vo Van Tan road area.

Nope, their main office is 224 Pasteur, District 3.

How is it not like a pyramid scheme? Its network marketing. Get people to sign up and you and your team profit.

I went to the Herbalife event last year. The doctor that spoke was just spewing out how cool his image got when becoming part of Herbalife.

Herbalife, Nuskin, Qivana, Amway same pyramid scheme payouts with different structures of making money. Some products are good, but some can get expensive. Sure if you are the right type of promoter, you too can be part of the pyramid that makes a business works for you.