Apple Inc. (AAPL), Herbalife Ltd. (HLF): Billionaire Dan Loeb’s Latest Moves

Recent news shows that Herbalife Ltd. (NYSE:HLF) has reached an agreement with Carl Icahn. The company will increase the size of its board to accommodate Icahn-appointed directors. I would remain cautious on what the ultimate fallout could be from the billionaire battle taking place over whether Herbalife is a pyramid scheme. The company also pays a 3% dividend yield for investors willing to ride out the turmoil.

Third Point added 2.15 million Dollar General Corp. (NYSE:DG) shares last quarter, making the stock 1.72% of the fund’s portfolio. Dollar General, founded in 1939, has amassed an impressive presence across the U.S., with over 10,000 stores. Since its IPO in 2009, the stock is up 110%.

Dollar General is also expected to move beyond consumables, to include health and beauty aid products. What’s more is the discount retailer plans to expand into California and the northeastern U.S. during 2014. Dollar General managed to post EPS of $0.63 last quarter, compared to $0.50 for the same quarter last year, which was on the back of 4% higher same store sales year over year.

Don’t be fooled

I like Morgan Stanley’s prospects, especially after its Smith Barney takeover, and I also like Dollar General given its position in the discount market. But unlike Third Point, I would rather take a “wait and see” approach with Herbalife Ltd. (NYSE:HLF).

The article Billionaire Dan Loeb’s Latest Moves originally appeared on Fool.com and is written by Marshall Hargrave.

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