Overnight, the WSJ reported that Carl Ichan was quietly shopping his 18% stake in HLF with an intent to sell it, perhaps to Bill Ackman. Predictaly, HLF stock tumbled on the news, to which we said first thing this morning that “we expect that Icahn will come out with a statement defending his existing position (and likewise the same for Ackman) soon, perhaps even sooner if HLF opens substantially lower on the news.”
We waited longer than originally expected, but sure enough, Ackman just made the day of anyone who bought on the WSJ news, when in an official statement on his website he announced that contrary to the WSJ report, “I have never given Jefferies an order to sell any of our Herbalife shares.” On the contrary, he adds that that “last month we publicly disclosed that Herbalife granted us permission to go up to 35%. At the time of the disclosure, Ackman declared that I have no interest in increasing my position in Herbalife. This was obviously another misstatement of the facts by Ackman since today I bought another 2.3 million shares.”
He then unloads on Ackman, again:
Ackman may be a smart guy but he has clearly succumbed to the same dangerous (and sometimes fatal) malady that afflicts many investors – he’s developed a very bad case of “Herbalife obsession”. Obsessions concerning the value of stocks are the undoing of many investors because they often blind you to the facts, and it becomes impossible to see the forest for the trees.
Watching Ackman on television today is a perfect example of this “obsession”. A month ago he declared that I’d never buy more Herbalife stock, which obviously turned out to be completely wrong. Today, he said I’m done with my Herbalife investment and that I’m a seller.
Obviously wrong, again.
It amazes me that a guy who hasn’t any knowledge of my internal investment thinking believes he is in a position to go on television to tell the world what I AM thinking! Amazing! He has no right to do so, and even worse, I’m sure his unsubstantiated, obsessive comments, especially about Herbalife, have cost investors a great deal of money over the last few years.
And, after plunging this morning, HLF stock is soaring on the news, making the HLF shorts’ lives miserable once again.
His full statement below:
Over the years many investment bankers, including Jefferies, that specialize in block trades frequently make bids for our large positions. But completely contrary to what Bill Ackman stated on television today, I have never given Jefferies an order to sell any of our Herbalife shares. Last month we publicly disclosed that Herbalife granted us permission to go up to 35%. At the time of the disclosure, Ackman declared that I have no interest in increasing my position in Herbalife. This was obviously another misstatement of the facts by Ackman since today I bought another 2.3 million shares. I continue to believe in Herbalife: it’s a great model that creates a great number of jobs for people. Ackman may be a smart guy but he has clearly succumbed to the same dangerous (and sometimes fatal) malady that afflicts many investors – he’s developed a very bad case of “Herbalife obsession”. Obsessions concerning the value of stocks are the undoing of many investors because they often blind you to the facts, and it becomes impossible to see the forest for the trees. Watching Ackman on television today is a perfect example of this “obsession”. A month ago he declared that I’d never buy more Herbalife stock, which obviously turned out to be completely wrong. Today, he said I’m done with my Herbalife investment and that I’m a seller. Obviously wrong, again. It amazes me that a guy who hasn’t any knowledge of my internal investment thinking believes he is in a position to go on television to tell the world what I AM thinking! Amazing! He has no right to do so, and even worse, I’m sure his unsubstantiated, obsessive comments, especially about Herbalife, have cost investors a great deal of money over the last few years.
via http://ift.tt/2bqs5u5 Tyler Durden