Monday, January 28, 2013

Ackman and Icahn in Cahoots: Scheme to Dispose Herbalife Shares of Group?


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.


It was a good idea.

(In regards to the 8.9M shares Loeb filled for, he could be net neutral.  See Perry Corp Lawsuit about Swaps)                                                                                      

Icahn Video Interview  "Invest Together" + "Short Squeeze", To funny


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

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