The year is going Bill Ackman’s way especially when it comes to Herbalife Ltd. (NYSE:HLF) which seems to be in trouble, Karen Finerman said in a Pops & Drops segment on Fast Money aired on CNBC.
“[Big drop for Herbalife] in a year that seems to be going right for Bill Ackman here, this is just an example. HLF put out earnings that were pretty disappointin on a number of fronts. [It was] not horrendous but they also talked about maybe a little bit less pressure on their sales people,” Finerman said.
Herbalife Ltd. (NYSE:HLF) declined a massive 21% at Tuesday’s close to settle at $44.26. It reported that for the third quarter of the year, it had a profit of $11.2 million, or 13 cents per share, down 92% compared to its performance for the same quarter last year.
Bill Ackman has been on the assault against Herbalife Ltd. (NYSE:HLF) since December of 2012. The institutional investor is not all talk, however, as he has an over $1 billion short on the stock. Bill Ackman may be in the black now as it is believed he made that short at $50 per share and the stock is now trading at about $41.
Karen Finerman said that though the stock has had a massive pullback and is now relatively cheap compared to its price in the recent past, she would not recommend people buy the stock.
Herbalife Ltd. (NYSE:HLF) shareholders includes Soros Fund Management headed by George Soros. The firm reported owning about 4.74 million shares in the company by the end of the second quarter.