$HLF Dan Loeb: Plenty of room. "Herbalife’s Shares Are Worth $55-$68" Or Even "Well Above" Long http://stks.co/gM77 Bullish
Submitted by Tyler Durden on 01/09/2013 14:39 -0500
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Update: this is just getting better and better: flashing headlines that the SEC has opened an inquiry into Herbalife. Dow Jones adds that inquiry may not result in action. Stock slides on the news, however following speculation that the SEC may (or rather should) be investigating the various massive puts in HLF stock before the Ackman presentation in mid-December, it bounces. Total chaos, and all very exciting.
One guy (whose positive P&L in 2012 was primarily thanks to the gap lower in HLF in the last two weeks of 2012, since filled entirely and then some), says $0. Another guy, whose nearly $10 billion hedge fund was up 30% in 2012, says over $60. Whom do you trust? As far as we are concerned, the second Tilson goes long, we dump everything.
From Loeb's letter:
So.... who is short and sweating profusely? These guys:
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