Herbalife (HLF) FTC News May Be Death Knell, Not Saving Grace - Blogger

Pivotal Research Comments on Herbalife's (HLF) 10-Q and FTC Disclosure

Pivotal Research analyst Timothy Ramey in a research note discussed Herbalife's (NYSE: HLF) FTC disclosure in its recent 10-Q, and related short arguments. In his view, there will likely be a monetary settlement and "small palatable changes." He also doesn't think the words "injunctive relief" communicate anything.

Ramey explained, "Shorts believe the FTC is pressing for a Vemma-like resolution to HLF. This might require that HLF set up a preferred customer status; preferred customers would not be eligible for commissions they would be true discount buyers. In Vemma, there is the 51% rule to earn... More

Shorting Herbalife (HLF) is 'Absurdly Risky', Says Pivotal Research

Pivotal Research maintained a Buy rating on Herbalife (NYSE: HLF) with a price target of $90. Comments follow the release of strong Q1 results and an updated FTC disclosure. Analyst Timothy Ramey thinks the end game is near on the FTC matter, and he said being short Herbalife at this time is "absurdly risky."

Yesterday the company said in an SEC filing:

The outcome of these matters with the FTC, whether by mutual resolution or through litigation, could have a material adverse impact on the Companys business operations, its results of... More

UPDATE: Herbalife (HLF) Says Talks With FTC Have Progressed to Advanced Stage

(Updated - May 5, 2016 5:28 PM EDT)

(Updated)

Herbalife (NYSE: HLF) said talks with the FTC have progressed to an advanced stage, according to Bloomberg, citing an email statement.

"While there are a number of open issues, those discussions have progressed to an advanced stage and the range of outcomes now includes litigation or settlement. If a settlement is reached with the FTC, it would likely include injunctive and other relief as well as a monetary payment with our best estimate of a payment being $200 million," the company told... More