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Herbalife Soars As Belgian Court Confirms Not A Ponzi Scheme
Unfortunately for Bill Ackman, another leg of the "short Herbalife to the grave" thesis just broke when a Belgian Appeal Court hearing overturned its previous findings:
- *HERBALIFE 'WELCOMES' JUDGEMENT BY BELGIAN APPEAL COURT
- *HLF CITES CLAIMS THAT HLF WAS OPERATING A PYRAMID SCHEME
- *HERBALIFE SAYS COURT STATES ITS SALES MODEL IN FULL COMPLIANCE
The stock is up 5% on the news, breaking to a new record high above $75.
Herbalife PR Statement:
Global nutrition company Herbalife (NYSE: HLF), welcomes the judgment by a Belgian Appeal Court that states the company`s sales model is in full compliance with Belgian law.
This judgment overturns a previous ruling by the lower court, in response to claims brought by Belgian consumer organization Test-Aankoop, that Herbalife was operating a pyramid scheme.
Herbalife always believed that the first judgment contained factual errors and was based on misinterpretations of its direct-selling sales method, and was confident that the original judgment would be overturned on appeal.
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You would think that confirming its not a ponzi scheme would be bad news in todays ponziconomy.
+55
They also concluded Social Security, Medicare and the US Dollar are not Ponzi schemes either.
Payin' it forward, yo!
Do ya think Carl is givin' Bil a tug right now or just slammin' it...........
Not a pyramid scheme, wink wink nudge nudge.
Next you are going to tell me everything that a Belgian court rules is true.
Like Belgium is HLF's #1 market. LOL!
btw is anyone interested in signing up under me as a distributor? /s
Bill Ackman. It's what's for dinner.
"I will never alter my position on Herbalife. I will not bend or waver. I will keep getting this 2x4 shoved up my ass for the rest of my life, no matter how much damage it does to me."
I love "true believers" in the investment world. You know right where they stand, which makes targeting the mortar shells much easier.
It's not a pyramid scheme - it's ALIENS - http://memecrunch.com/meme/DVO9/pyramid-schemes/image.png
I cant wait till HLF soars to 83 bucks when the Zimbabwean Court says that HLF's sales model is in compliance with the country's law.
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Yes, it is bad news, but then you have to apply the Bizarro World modification coefficient which, because Obama, makes bad news good news.
I wonder if MDB ever unloaded that garage full of Herbalife stuff he was worrying about earlier this year.
I'm sure he safely re-hypothecated the inventory for treasuries!
Who has a story an Am-Way?
Up goes the the curtain, there is the sign, then there is the click as they lock those auditorium doors. The gasp in the audience and all those people saying the same thing...."Oh for Fucks Sake!"
Don't worry, it's not a pyramid scheme.
Right!
re: "Amway"
quote from: http://explosivemlm.com/amway/amway-lawsuits-explained/
Given Belgium is an EU nexus of crime and pedophilia, like DC or Ottawa, I would consider anything they say to be the opposite of the truth.
The scandal that was squashed:
http://en.wikipedia.org/wiki/Marc_Dutroux
If you ever have the time and stomach youtube it. Dutroux Affair.
US ambassador = pedophile:
http://nypost.com/2013/06/11/hillarys-sorry-state-of-affairs/
I spent almost an entire day one time reading about the Dutroux scandal. Tough to stomach, and not something I'd care to revisit.
You did your duty then informing yourself. Other ones in concert to this wouldbe the Franklin Coverup in Nebraska, and the Dunblane massacre in Scotland. The waking up process is long, hard, and varied - but realizing and digesting that those in power across the developed world are truly monsters or compromised empty vessels in the majority of cases, is the hardest.
The Belgium Court is a Ponzi scheme.
As "ponzi" is the new norm, all across the board, then therefore there is no "ponzi" anymore.
It's just another shade of grey, in the grey zone.
Very simple really. Everything is a ponzi and nothing is a ponzi.
As mentioned before, it is not a crime to exploit underclass lack of financial literacy or business acumen.HLF exploits the language and street cents of underclasses in multiple countries and demographics with their margin juicing, channel stuffing and weak governance on awarding performance incentives. Again, none of that is a crime by law or a definition of a Ponzi scheme.
Is it reprehensible to invest in these companies ? No more than investing in RJR or Armalite. Would HLF suppliers be better off without HLF ? That's a loaded question and can be equally applied to Mary Kay or Tupperware, both of which were accused in their 1980's go-go years of exploiting female financial illiteracy with juicy GORS & inventory pump. In the current form of HLF, the answer is likely yes. But if you remove HLF today, then it will create a shaky precedent for anyone doing vendor resales to be captured for ponzi.
In short, Bill needs to think what he wants to do with the strategy.
If Bill really wanted to focus his attention, his next target should be on financial literacy itself or target the predatory practices of consumerist conglomerates who exploit it.
The endgame in HLF will likely require
1. Bill needs to get a RICO against HLF proving they enforce or coerce people to maintain their memberships & outlets through deceptive practices.
2. HLF recognizes their appeal is in a 'trusted' brand with underclasses and a larger brand agent such as P&G acquires HLF. Subsequently the HLF is used for pushing nutritional food choices to the outlets, in turn creating a poverty escape outlet for those entrepenuers via health food vendorship.
2 is not rocket science and is well known in The City as the likely objective of a MBO/LBO strategy in 2014.
And when will Bill get the Belgian court to rule on Social Security or Medicare in the U.S.?
well said... as i posted many months ago- who died and made Ackman the new head of the global "better business bureau"? what an arrogant little fuck...
and let's not forget RICO is a disgusting, un-Constitutional gov't power grab
Hey where is my 2nd pomo?
If its not a Ponzi scheme why is it up? Sell sell sell.
I believe its 1:30 EST - wait for it..., you'll know its started when the indexes go green.
Moved
So given that Ackman held a press conference and made a public announcement that he had a clear legal opinion that it was a pyramid scheme, and it moved the market downwards (in his favour), is he going to jail?
No, it's clearly ok now to manipulate the mkt. with "public announcements" just ask Icahn... SEC says it's all kosher...
Yes, although Icahn has changed his story from "an AAPL buy-back will happen according to my conversation with Tim" to "I am talking to Tim about a buy-back". Big difference which is of course lost on the SEC.
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need a scorecard of which filthy rich j's are winning vs. losing on this squeeze...
It's not a question of whether some government/court decides Herbalife is or is not this or that.
The thing is flakey. It produces nothing, sells nothing, markets air and advice. HOW it does so is irrelevant: it's built on an era of cheap money junk consumption and will be among the first to fall when reality bites.
"The thing is flakey. It produces nothing, sells nothing, markets air and advice."
Sounds about the majority of economic activity in "develeped serviced-based" ecnonomies...
Bullish on Belgian Bribery Case.
When Herbalife does finally crumble, Ackman will have a headline he can frame.
He can put it next to the framed picture of his nemesis - Ben Bernanke.
Two framed pictures - cost = $400+ million, value = $5
OUCH.