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Herbalife Hedges: Dan Loeb Owns Bill Ackman

Stocks in this article: HLFGOOGLFG

It's well done, and at the caliber one would expect out of massively successful network marketing company. The video doesn't leave a lot of room to take shots at their claims. I understand it's all about marketing, but I have to give them credit, disinterested parties will likely view the company in a positive light after watching. Not everyone will be as impressed with the message as I was.

According to The Wall Street Journal, Hedge fund manager Whitney Tilson's T2 Partners is shorted Herbalife in part based on Ackman's presentation. "Pershing Square's analysis of Herbalife is the most remarkable piece of investment analysis I have ever seen. Simply astonishing" Tilson said.

I am not sure that Tilson and I watched and read the same presentation because when I was finished I had the opposite reaction. In Will Herbalife End Up a Penny Stock? I wrote "I read the presentation and listened to Ackman state his case. I wasn't convinced and finished with the impression that I just read a "hit piece" relying more on emotion than logic" and "For example, the percentage of insurance salespeople who make more than $100,000 a year is probably similar to the percentage of successful Herbalife representatives."

I looked at the numbers, and evidence, and entered a bullish position. The option premium as a result of the incredible expansion in implied volatility sealed the deal and in less than a week later I exited the majority of my position. When the January options expire I expect I will be out the rest of the position.

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