Herbalife (HLF) Short Sellers Invigorated After Einhorn's Win With His Other Big Short
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Investors asking themselves why Herbalife Ltd. (NYSE: HLF) is down 25 percent since hedge fund manager David Einhorn began questioning the company's business model on Tuesday need to look no further than today's blow-up du jour - Green Mountain (Nasdaq: GMCR).
Green Mountain is down 39 percent this morning after weak Q2 results and lower guidance. What's more is that shares are down 67 percent since Mr. Einhorn went public with his short thesis on the stock in October of last year.
It has been misstep after misstep since Einhorn has been involved short on Green Mountain.
Einhorn's short on Green Mountain has been a thing of beauty - essentially shares have gone straight down since he has been evolved with very little nervousness - something rarely seen when shorting high-fliers.
So, as you can see, following Mr. Einhorn into a short in Herbalife looks like a no brainier to some after his huge success with Green Mountain. That said, Herbalife is no stranger to attacks from short sellers. Since the onset they have battled them successfully and proven that its pyramid-type direct selling approach works and is wildly profitable. Game on Mr. Einhorn, Game on.
Green Mountain is down 39 percent this morning after weak Q2 results and lower guidance. What's more is that shares are down 67 percent since Mr. Einhorn went public with his short thesis on the stock in October of last year.
It has been misstep after misstep since Einhorn has been involved short on Green Mountain.
Einhorn's short on Green Mountain has been a thing of beauty - essentially shares have gone straight down since he has been evolved with very little nervousness - something rarely seen when shorting high-fliers.
So, as you can see, following Mr. Einhorn into a short in Herbalife looks like a no brainier to some after his huge success with Green Mountain. That said, Herbalife is no stranger to attacks from short sellers. Since the onset they have battled them successfully and proven that its pyramid-type direct selling approach works and is wildly profitable. Game on Mr. Einhorn, Game on.
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