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.

 

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s