Herbalife: An Update


Herbalife didn’t get much of a bounce today, a day after investor David Einhorn raised questions about the company’s accounting that sent the shares tumbling.  After rising early in the day, the shares fell another 6 percent, even after the company provided additional information in response to Einhorn’s questions.  (My earlier post discussed the company’s response strategy.)

It looks like investors see too much risk and simply want out, regardless of the what the company says, and Einhorn’s prescient calls on Lehman Brothers and Green Mountain (which announced weaker-than-expected earnings today) make it risky for investors to bet against him.




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