Bill Ackmans actions in Herbalife seem to mystify most:.
Facts:
1) A billion dollar
short position is taken in Herbalife by Ackman,.
2) Discloses this
concentrated position on CNBC
3) Dan Loeb files a 350M
dollar long position a week later, and before required.
4) Carl Icahn then publicly mocks Ackman on CNBC for betting against Herbalife.
5) Ackman defends his
position.
Ackman boasting about the size of his short position in liu
of everything seems more like an invite to squeeze him more than anything else. Its been enormously profitable for the billionaire
hedge fund club the past 10 years to operate in line with each other rather
than start battle; for example when Icahn comes on TV and claims hes looking at
taking an interest in a company which Passport Capital and Harbinger are looking
to get out of,,
Ferrous Resources.
I think these guys are full of shit and this Herbalife
nonsense is just a big show meant to fool the public. Why? Perhaps
certain funds and banks were holding a billion in Herbalife which the market couldn't handle without breaking many points. So
they come up with a scheme where they work together and feed the appearance of
Ackman having his head in a noose ready for a short squeeze. The public rushes to buy shares ahead of the "squeeze", which provides the cartel just the interest they need to dispose of ponzi shares at inflated levels.
(In regards to the 8.9M shares Loeb filled for, he could be net neutral. See Perry Corp Lawsuit about Swaps)
There’s a bunch of interviews actually, on CNBC
and Bloomberg. Take a look at the Google
News headlines for Herbalife too, its
rather funny how easy this scheme has taking hold.
What do you think?
Donny
IHS.Research At mail.ru