What do you think about Herbalife (NYSE:HLF) ?

Question

I am very bearish on HLF. Firstly, I do think the company is a pyramid scheme and will run out of people to support this scheme within the next few years, as people catch more media attention from the likes of investors such as Bill Ackman. They appear to be hiding some of their distributor numbers and such which is questioning. The stock fell 10% this year and to me, it seems like this business can go very close to 0.

What do you guys think? Is this a short candidate? I am thinking about shorting and possibly buying some long-dated puts because I think this gravy train will be stopping soon.

SteveStewins · Answer

I am very bearish on HLF. Firstly, I do think the company is a pyramid scheme and will run out of people to support this scheme within the next few years, as people catch more media attention from the likes of investors such as Bill Ackman. They appear to be hiding some of their distributor numbers and such which is questioning. The stock fell 10% this year and to me, it seems like this business can go very close to 0.

What do you guys think? Is this a short candidate? I am thinking about shorting and possibly buying some long-dated puts because I think this gravy train will be stopping soon.

wallstreetcappers · Answer

Well this is a big time hedge fund fight..there are players on both sides and to me the length of time you might have to wait is too long to be worth the hassle.

It looks like a MLM-ish type of thing to me as well, similar to USNA and recently USNA went from 150 to 60ish and I even remember a time before USNA was even listed on the stock exchange..some co-worker was selling their vitamins.

If you go with puts I would HIGHLY suggest going out as far in time and near or in the money because those premiums are going to be full of juice if you go out of the money and it will be absorbed and your gain will be lesser.

royboymiami · Answer

stay away from Herbalife .. Bill keeps trying to f them because he has so much money shorting them but they arent having it... also the health craze is on the rise

mainman11111 · Answer

if u are insane. u might as well buy itif u wanna play w fire i&#x27;d rather buy vvus rad or mnkd

What do you think about Herbalife (NYSE:HLF) ?

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