Monday, 30 March 2015
Last updated 2 days ago
Dec 18 2013 | 11:10am ET
One of Herbalife's biggest boosters took a few bows yesterday, offering thanks—if not by name—to Pershing Square Capital Management's William Ackman.
Tim Ramey, an analyst at D.A. Davidson, said that Herbalife is better off for the attention of short-sellers like Ackman, who has called the nutritional supplements company a pyramid scheme and made a $1 billion short bet against it.
"We'd like to thank Mom, Jesus and the short sellers," Ramey wrote. "By throwing down the gauntlet to the degree that they did—daring PwC to render a clean audit—they elevated the level of scrutiny to a level heretofore unheard of."
Herbalife shares soared this week after PricewaterhouseCoopers, its new auditor, released its review of the company's books for 2010, 2011 and 2012, in which it made "no material changes." And Ramey said he expects the stock to go even higher.
"In our opinion, this has paved the way for Herbalife to have a growth stock valuation. We believe the amount of world-class research conducted by the long-holders of Herbalife has scrubbed the model."
Pershing Square was already sitting on a $500 million paper loss on its Herbalife short before the reaudit results, but Ackman isn't giving up, insisting Monday that "Herbalife is a pyramid scheme that will be shut down by regulators."
"Remember, Enron also had audited financial statements," he told Bloomberg News.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…