Stay Away from Herbalife (HLF), Fundamentals No Longer in Play! - Cramer

January 28, 2013 10:24 AM EST
Herbalife (NYSE: HLF) is lower on the session early Monday amid comments by stock wunderkind Jim Cramer late last Friday.

Cramer said that the spat between activist investor Carl Icahn and Pershing Square's Bill Ackman has him staying as far away from Herbalife as possible. Ackman is short the stock as he sees shares falling to zero, which may or may not happen until the government steps in and indicts the company, Cramer notes.

Icahn sees Herbalife buying back a ton of shares or getting a takeover bid, squeezing Ackman out of any short position.

So, throw fundamentals out the window. With the two billionaire investors looking to outdo each other, Cramer says this stock is far too volatile to get involved with right now. For more on the Ackman/Icahn rivalry and salvo flung during live TV last week, click here.

Notably, short positions on Herbalife ebbed slightly from the end of December through the middle of January. Market data has about 35.83 million Herbalife shares being held short, or 33.7 percent of float, which is down nearly four percent from the last reading.

Herbalife is up 1.5 percent on the session.

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