cowboyinvestor69
7 years ago
Company buybacks,central banksters, theyre floating the markets its now become a joke, bonds and stocks. Only a few entities have the cash to pull off this rigged crap.. Its getting pushed off to the Gov funds, regular inv funds, pension funds, and its all crap. theyll keep propping up the market until bond market starts failing, they need crap bonds to hold up EU debt. I'm going to start moving majority into crypto's now. Get ready for "THE EVENT" its coming sooner than peeps think..
hughes16
8 years ago
Bill Ackman's latest short thesis
Great summary of Bill Ackman's letter
Herbalife Short
Despite weak performance in Q1, share price has appreciated by more than 50% YTD
Due in part to HLF’s misleading portrayal of its first quarter operating performance and the company’s share repurchase program
Reported flat y-o-y constant-currency sales growth across the business
Growth in some markets (Mexico, EMEA, and China) was offset by substantial declines in others (South & Central America, North America, and Asia Pacific)
Reported significant persistent declines in South Korea, Brazil, and UK
Dramatic “pop” and “drop” reflected in HLF’s individual markets are highly characteristic of pyramid schemes, which achieved accelerated growth until a market reaches saturation, after which there is a dramatic decline in volumes as participants recognize that being a distributor is a money-losing proposition
While bullish investors have suggested that the company’s recent results show that it can manage effectively through the requirements of the FTC settlement, North American performance in the quarter does not yet reflect the impact of FTC permanent injunction
China at 20% of sales is HLF’s second largest segment after North America – while China realized 17% volume growth in Q1, management noted that there was a significant pull-forward in volume ahead of a 5% price increase in April
10-Q included significant notable changes to risk disclosures with respect to China
“Uncertainties relating to interpretation and enforcement of legislation in China governing direct selling and anti-pyramiding”
Would not be surprised to learn that HLF is under investigation by Chinese authorities, particularly in light of the recently announced Foreign Corrupt Practices investigation of HLF’s China operations by the Department of Justice and the SEC
Believe the injunctive relief imposed by the FTC is likely to weigh significantly on HLF’s financial performance in the coming quarters
Coupled with decelerating growth and substantial deterioration in many international markets, expect earnings to decline on an operational basis in 2017
Despite above issues, now trading at 17x the midpoint of management’s adjusted guidance
Currently trading at highest P/E ratio in its history as a result of recent stock price increase and its declining earnings
BlueAlien
8 years ago
Herbalife Ltd. Announces Closing of $1.45 Billion Credit Facility
Herbalife Ltd. (NYSE: HLF), a global nutrition company, today announced that it has closed a new $1.45 billion senior secured credit facility, which consists of a $150 million revolving credit facility maturing 2022 and a $1.3 billion term loan maturing 2023.
“This credit facility affords us the financial flexibility to continue to create long-term value for our shareholders, capitalize on our solid business fundamentals, and realize our global market potential,” said Herbalife Chief Financial Officer John DeSimone. “We thank our banking partners for their confidence and commitment in Herbalife Nutrition.”
Credit Suisse acted as administrative agent for the new term loan and collateral agent for the credit facility, Rabobank acted as administrative agent for the revolving credit facility, and Citizens Bank, N.A. acted as documentation agent for the credit facility. Credit Suisse and Rabobank acted as joint book runners and joint lead arrangers of the transaction. The new facility replaces Herbalife’s senior secured revolving credit facility which was due to mature in March 2017.
About Herbalife:
Herbalife is a global nutrition company that has been changing people's lives with great products since 1980. Our nutrition, weight-management, energy and fitness and personal care products are available exclusively to and through dedicated Herbalife Independent Members in more than 90 countries. We are committed to fighting the worldwide problems of poor nutrition and obesity by offering high-quality products, one-on-one coaching with an Herbalife Member and a community that inspires customers to live a healthy, active life.
We support the Herbalife Family Foundation (HFF) and its Casa Herbalife programs to help bring good nutrition to children in need. We also sponsor more than 190 world-class athletes, teams and events around the globe, including Cristiano Ronaldo, the LA Galaxy and champions in many other sports.
The company has over 8,000 employees worldwide, and its shares are traded on the New York Stock Exchange (NYSE: HLF) with net sales of $4.5 billion in 2015. The Herbalife website contains a significant amount of financial and other information about the company at http://ir.Herbalife.com. The company encourages investors to visit its website from time to time, as information is updated and new information is posted. To learn more, visit Herbalife.com or IAmHerbalife.com.
FORWARD-LOOKING STATEMENTS
This document contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, such as those disclosed or incorporated by reference in our filings with the Securities and Exchange Commission. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in our forward-looking statements include, among others, the following:
• our relationship with, and our ability to influence the actions of, our Members;
• improper action by our employees or Members in violation of applicable law;
• adverse publicity associated with our products or network marketing organization, including our ability to comfort the marketplace and regulators regarding our compliance with applicable laws;
• changing consumer preferences and demands;
• the competitive nature of our business;
• regulatory matters governing our products, including potential governmental or regulatory actions concerning the safety or efficacy of our products and network marketing program, including the direct selling market in which we operate;
• legal challenges to our network marketing program;
• the consent order entered into with the FTC, the effects thereof and any failure to comply therewith;
• risks associated with operating internationally and the effect of economic factors, including foreign exchange, inflation, disruptions or conflicts with our third party importers, pricing and currency devaluation risks, especially in countries such as Venezuela;
• uncertainties relating to interpretation and enforcement of legislation in China governing direct selling;
• our inability to obtain the necessary licenses to expand our direct selling business in China;
• adverse changes in the Chinese economy;
• our dependence on increased penetration of existing markets;
• contractual limitations on our ability to expand our business;
• our reliance on our information technology infrastructure and outside manufacturers;
• the sufficiency of trademarks and other intellectual property rights;
• product concentration;
• our reliance upon, or the loss or departure of any member of, our senior management team which could negatively impact our Member relations and operating results;
• U.S. and foreign laws and regulations applicable to our international operations;
• restrictions imposed by covenants in our credit facility;
• uncertainties relating to the application of transfer pricing, duties, value added taxes, and other tax regulations, and changes thereto;
• changes in tax laws, treaties or regulations, or their interpretation;
• taxation relating to our Members;
• product liability claims;
• our incorporation under the laws of the Cayman Islands;
• whether we will purchase any of our shares in the open markets or otherwise; and
• share price volatility related to, among other things, speculative trading and certain traders shorting our common shares.
We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170215005675/en/
Herbalife Ltd.
Jen Butler, 213-745-0420
VP, Media Relations
jenb@herbalife.com
or
Investor Contact:
Alan Quan, 213-745-0541
VP, Investor Relations
alanqu@herbalife.com
mauiguy2
8 years ago
During the past couple of years, I've shorted HLF two or three times with little success. Even when bad news is released, the stock seems to motor upwards. I have my own theories regarding the reason, but that's another story!
But, eventually either the overall market goes down or there's some really bad HLF news and the price drops quickly. Those are the times I seem to break even on my shorts. But, other than those quick drops, the PPS has remained remarkably strong.
My prediction? We could go as high as 75 or it could drop as low as 40 during 2017. Yeah, I know it's not much of a prediction! It's the nature of the stock.