Ackman's Year Of Living Dangerously Get Worse - The Herbalife Timeline (Audit Complete With No Material Changes)

Tyler Durden's picture


UPDATE: Herbalife is halted for the following news:


Which opens the doors for the substantial buyback they have planned. We suspect one can hear a pin drop in Pershing Square's headquarters.

Via Reuters,

Today, the Company filed an amended 10-K/A for the fiscal year ended December 31, 2012, following the completed re-audit of the Company's 2010, 2011 and 2012 financial statements. Additionally, the Company today filed amended 10-Q/As for each of these quarters of 2013 following the completion of SAS 100 reviews of those periods by PwC. With these amended filings, the Company is now up to date with its SEC periodic filings.


There were no material changes to the Company's audited 2010, 2011 or 2012 financial statements included in the amended 10-K/A or to the Company's first, second or third quarter 2013 financial statements included in the amended 10-Q/As as compared with the Company's previously filed financial statements for and as of each of such periods(1).


As previously announced, the change in the Company's independent auditors to PwC, and the corresponding need to perform re-audits, was the result of the resignation of Herbalife's former independent auditor, KPMG LLP ("KPMG") due to the impairment of KPMG's independence resulting from its now former partner's unlawful activities. As previously publicly stated by KPMG, their resignation was not related to Herbalife's financial statements, its accounting practices, the integrity of Herbalife's management, or any other reason.


Herbalife has re-opened up 9% over $75 on very heavy volume - It seems Ackman's "end of the earth" bet may take a little longer...


This week marks the one-year anniversary of Bill Ackman’s 342-page slide presentation at the Ira Sohn Conference in NYC.  At that time he publicly disclosed his $1 billion short bet against Herbalife (HLF), accusing the company of being a pyramid scheme and claiming its stock was destined to fall to zero once regulators stepped in.  As everyone knows, HLF shares plummeted, losing nearly half their value in the three days after the presentation.  The market’s initial response did not last, and HLF is up about 160% since its 12/21/12 low of $26.06 (vs S&P 500 +24%)Pershing Square’s public campaign has taken many forms, as Barclays outlines below...

Via Barclays,

...including additional 300+ page conference presentations, the sending of a long letter to HLF’s new auditor PWC, and repeated lobbying efforts directed towards U.S. regulators, elected officials and community activists.  Subsequent presentations by Ackman have had little impact on the stock price, and no formal regulatory action (or indication of such) has taken place. 

More recently, press reports suggest that HLF decided to get more aggressive in late Sept. after shares topped $70, hiring a well-connected strategic advisor (which specializes in shareholder activism) to approach Pershing Square investors and highlight the risks associated with the fund’s outsized exposure to the HFL short, a position which has trended quite negatively since inflecting in April. 

Numerous major investors, such as Carl Icahn, Dan Loeb, George Soros, Kyle Bass and Stan Druckenmiller, have publically disagreed with Ackman and invested heavily in HLF. Bill Stiritz, a well-regarded private investor in consumer businesses, has also announced a substantial investment.  We summarize their stakes below. 

We also note that we have not identified further venues for Mr. Ackman to speak and that the next Ira Sohn Conference in NYC will not be held until May 2014.

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Mon, 12/16/2013 - 16:25 | 4251537 fonzannoon
fonzannoon's picture

Please downvote me if you give a rats ass about this dipshit ackman and upvote me if the only headline about him you would be interested in was "Ackman runs with scissors, loses penis"

Mon, 12/16/2013 - 16:53 | 4251651 Toolshed
Toolshed's picture

"Please downvote me if you give a rats ass about this dipshit ackman and upvote me if the only headline about him you would be interested in was "(insert dickhead activist investor name here) runs with scissors, loses penis"


Mon, 12/16/2013 - 16:57 | 4251663 SWRichmond
SWRichmond's picture

Blame It On Rio

Mon, 12/16/2013 - 16:27 | 4251553 Yikes
Yikes's picture

"Herbalife halted pending news".


Hit's keep coming for Ackman I guess. 


Why am I wasting time with this?

Mon, 12/16/2013 - 16:38 | 4251587 CounterPartyVice
CounterPartyVice's picture

If you like your ponzi scheme, you can keep it.

Mon, 12/16/2013 - 16:45 | 4251606 jcaz
jcaz's picture

Bill- dude-  EVERYTHING is a Ponzi, in the end....

Mon, 12/16/2013 - 17:01 | 4251685 SloMoe
SloMoe's picture

Oh no, Mr. Bill....

Mon, 12/16/2013 - 17:13 | 4251731 formadesika3
formadesika3's picture

London, Shaw.

Good anglo-saxon names, right?

Mon, 12/16/2013 - 17:49 | 4251879 walküre
walküre's picture

Ponzi was Jewish or at least he ate kosher.

Tue, 12/17/2013 - 16:42 | 4254968 formadesika3
formadesika3's picture

You sure? Maybe he adhered to one of those other sorta/kinda religions - catholicish, mormonish, muslimish.


Mon, 12/16/2013 - 17:20 | 4251737 y3maxx
y3maxx's picture

...Carl Icahn should be nominated for a Nobel Peace Prize.

Mon, 12/16/2013 - 17:29 | 4251805 adr
adr's picture

What would be interesting is if the piece of shit company actually reported real sales figures instead of made up self reported bullshit.

Yes everything is a Ponzi in the market now, but some are more Ponzi than others. Herbalife is Charles' best wet dream.

Mon, 12/16/2013 - 17:37 | 4251822 ebworthen
ebworthen's picture

I think Herbalife is a Ponzi scheme too, but I didn't bet one penny.

That is one of the most epic drubbings of all time.

Pride cometh before the fall, eh Bill?

342 page presentation a bad omen.

Mon, 12/16/2013 - 18:27 | 4252016 AGuy
AGuy's picture

"I think Herbalife is a Ponzi scheme too, but I didn't bet one penny."

No doubt a few months after Ackman is forced to close his short is when Herbalife implodes.


Mon, 12/16/2013 - 17:37 | 4251838 B.J. Worthy
B.J. Worthy's picture

Ackman sodomized by a chart erection. How poetic.

Mon, 12/16/2013 - 17:41 | 4251842 rqb1
rqb1's picture

I like Bill.  He made me some real money in ggp.  Fannie is interesting with his stake in common.

Mon, 12/16/2013 - 18:09 | 4251947 EARLPEARL
EARLPEARL's picture

i was on seeking alpha under name  earlpearl and made dozens of comments on hlf about how dumb ackman was and is.....the ackmanites complained about my comments and got me kicked account is read only now.. if anyone reading this post would copy and paste this comment to next article by matt stewart or quothe the raven i would appreciate it...if you post comments on seeking alpha and the others don't like them they get you kicked off....hlf will be 90 in less than 2 weeks, and when bill stiritz gets L B O put toghether it will be 120....ackman is done

Mon, 12/16/2013 - 19:02 | 4252093 ToNYC
ToNYC's picture

Business model of confidence beggaring thy kind, trusting associates, that they too can be the 3% who can make a living besides eating expensive proprietary alimentary canal inputs. There is no Edge and the Risk is in not buying enough of the product when you have nothing to do and especially convincing newbies stuffing their envelopes and disabling such kind and trusting humans as a species. Tax them up for social damages and they'll be denied like a bad wind, but that would be with free people.

Mon, 12/16/2013 - 20:55 | 4252410 Whatta
Whatta's picture

Dandy Don Meridith about right now (on Ackkkkkkman):

"Turn out the lights, the party's over..."

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