One Year Later, Herbalife (HLF) Still Isn't Ackman's Best Idea
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Herbalife (NYSE: HLF) is extending gains Monday afternoon after the company reported completion of its re-audit and no material changes would affect its financial statements.
Shares rose 10.3 percent today to $75.41. At current levels, the stock is up over 100 percent since Pershing Square's Bill Ackman disclosed his $1 billion short on stock on December 19, 2012, nearly one-year ago to the day.
Gains in Herbalife didn't come as a surprise to Ackman and, last October, the investor said in an investor letter that he converted about 40 percent of his short on the stock into long-term put options. The move mitigated some of the risk the firm was exposed to with a pure short, Ackman noted at the time.
Shares of Herbalife pared some initial gains, but are still up about 9.5 percent with increased volume.
Shares rose 10.3 percent today to $75.41. At current levels, the stock is up over 100 percent since Pershing Square's Bill Ackman disclosed his $1 billion short on stock on December 19, 2012, nearly one-year ago to the day.
Gains in Herbalife didn't come as a surprise to Ackman and, last October, the investor said in an investor letter that he converted about 40 percent of his short on the stock into long-term put options. The move mitigated some of the risk the firm was exposed to with a pure short, Ackman noted at the time.
Shares of Herbalife pared some initial gains, but are still up about 9.5 percent with increased volume.
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