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How can one man make a company lose 25% of it's market cap with just three questions.

+1 SB to you sir

Whats every ones opinion about Herbalife, any health geeks take any supplements from this company?

Comments (31)

  • OhYeah's picture

    This is crazy. Einhorn can make money on a position just by asking a few questions in a conference call. Not saying this is what happened but it's possible.

    "Sincerity is an overrated virtue" - Milton Friedman

  • Bossman_BB's picture

    He's a legend.

    He called Lehman before it went down, took a lot of heat for it, but was labelled a baller when everyone realized he was right.

    febreeze wrote:

    anyone who hasn't done so, should read Fooling some of the people all of the time

    Anyone have a PDF of it?

  • mb666's picture

    Wasn't he on the board of Countrywide? He killed it with Lehman but his overall view of the subprime mortgage industry wasn't on par with Paulson and Kyle Bass.

    The guy def has a knack for interpreting financial statements. Like Soros, he's taking advantage of the herd behind him.

  • In reply to mb666
    Brady4MVP's picture

    mb666 wrote:
    Wasn't he on the board of Countrywide? He killed it with Lehman but his overall view of the subprime mortgage industry wasn't on par with Paulson and Kyle Bass.

    The guy def has a knack for interpreting financial statements. Like Soros, he's taking advantage of the herd behind him.

    I think Einhorn understands individual stocks on a deeper level than almost anyone out there. Not just financial statements analysis but also extensive research into a company's distribution channels, inner operations, etc.

    Paulson made one REALLY good call and has been living off of it since. I'm not convinced that he is one of the truly elite hedge fund managers in terms of pure talent.

  • NewGuy's picture

    Also, I doubt Einhorn actually shorted it before the call. And I bet he was very surprised by the market reaction to his questions. If anything, I bet greenlight loads up the truck on Herbalife shares tomorrow. I'd be a massive buyer right now. This thing will pop 10+% tomorrow. You heard it here.

  • In reply to prospie
    TheSquale's picture

    prospie wrote:
    Brady4MVP wrote:
    The guy is such a fucking BOSS, it's sick. No doubt he's one of the 5 best hedge fund managers out there right now, in any space, along with the likes of Jim Simons, Seth Klarman, etc.

    None of this should matter to you, Brady. He doesn't even have a degree from a decent Ivy, much less an MBA. How does he plan on closing his next round of fundraising without an MBA?

    LOL you nailed it

  • Boothorbust's picture

    I don't get it. I saw the question and I read the transcript. His question seemed pretty innocuous and the CFO said they could easily provide the data. Does anyone have any idea what Einhorn's getting at or why people think this line of questioning suggests some fundamental weakness in either the business or the financials?

  • In reply to NewGuy
    andyinsandiego's picture

    NewGuy wrote:
    Also, I doubt Einhorn actually shorted it before the call. And I bet he was very surprised by the market reaction to his questions. If anything, I bet greenlight loads up the truck on Herbalife shares tomorrow. I'd be a massive buyer right now. This thing will pop 10+% tomorrow. You heard it here.

    Yeah definitely. Because Einhorn's the type of guy that does his due diligence during conference calls. He definitely didn't want to get them on the record responding to those questions, and he certainly doesn't already have a short position, nor does he know the company better than senior management.

  • In reply to NewGuy
    Boothorbust's picture

    NewGuy wrote:
    Also, I doubt Einhorn actually shorted it before the call. And I bet he was very surprised by the market reaction to his questions. If anything, I bet greenlight loads up the truck on Herbalife shares tomorrow. I'd be a massive buyer right now. This thing will pop 10+% tomorrow. You heard it here.

    How's that prediction working out so far? Down 2% in the first 2.5hrs of trading.

    EDIT: Now down 6.3% today, hope you had a good time loading up on HLF!

  • BlackHat's picture

    David Einhorn is the best research analyst in the business. Nobody comes close. I'd kill a small child and eat the remains in front of a live studio audience just for an opportunity to interview with him.

    I hate victims who respect their executioners

  • In reply to prospie
    gammaovertheta's picture

    prospie wrote:
    Brady4MVP wrote:
    The guy is such a fucking BOSS, it's sick. No doubt he's one of the 5 best hedge fund managers out there right now, in any space, along with the likes of Jim Simons, Seth Klarman, etc.

    None of this should matter to you, Brady. He doesn't even have a degree from a decent Ivy, much less an MBA. How does he plan on closing his next round of fundraising without an MBA?

    You saying Cornell ain't a decent Ivy? Well I do say I take exception to that