'Mother of all Short Squeezes' Risk Declines in Herbalife (HLF)

February 12, 2013 8:22 AM EST
Short interest in battleground stock Herbalife Ltd. (NYSE: HLF) decreased again, according to the latest data from the NYSE.

34,185,820 shares of HLF were held short as of January 31, 2013. This was down from 35,829,306 shares as of January 15, 2013. 32.27 percent of the free-float is sold short as of this data, down from 34.19.

This is the second straight decline in HLF short interest, which hit a peak of 37,298,384 on December 31, 2012.

Bill Ackman's Pershing Square hedge fund has been an aggressive short on Herbalife and thinks the stock is worthless. Meanwhile, fellow hedge fund investor Dan Loeb has taken a long position in Herbalife, saying the business is undervalued.

Carl Icahn and others have been looking for the 'Mother of all Short Squeezes' in HLF. The latest data suggests the short is getting less crowded, which reduces the chances of a squeeze.

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