Option Millionaires

[samedison]

On HLF Q1 earnings conference call,

Noted short-seller David Einhorn asked the company about some of its previous 10Kdisclosures.

Herbalife (HLF) was having a rough day dealing with an earnings forecast below expectation offered last evening, but it just got worse as apparently noted hedge fund manager (and short seller supreme – think Lehman Brothers) David Einhorn got on the conference call to "ask some questions". Once Einhorn gets involved you can bet a ton of institutional "me too" money will piggy back. We saw that in Green Mountain Roasters (GMCR) last year.

Eihhorn specifically noted that the company had listed three groups of distributor as "at the low end" in a previous filing but stopped disclosing that in its last 10K. In response to the question of whether the company stopped tracking or stopped disclosing that information, an Herbalife executive said the criteria for grouping distributors in to different classes was based off of volume purchases. The company said the reason it took the information out of the 10k was related to a change in CFO, noting it did not view the information as valuable information to the business or to investors. The company said its "objective is to be completely transparent."