However, what's really needed is an Ackman future, not Herbalife common stock. These hedge funds all really want to bet for or against Ackman, and it seems like the best way to do that is to take into account more than Herbalife. He won't have to cover unless there is a short squeeze, if he keeps hitting it out of the park with stocks like Procter & Gamble (PG) and Canadian Pacific (CP). His investors won't care about their exposure to Herbalife if they made a ton of money in Air Products (APD)just by Ackman going after the company. Who cares about Herbalife if that's the case?
You see that the way that Herbalife's investors make money is to break Ackman. The way that Ackman makes money is to break Herbalife. But Herbalife the stock? Let's be honest: It has become an irrelevance.
Now I don't expect an Ackman future anytime soon, but I think it is only fair to say that Ackman has had some big wins to go with his losses like this and J.C. Penney (JBP), and without the whole panoply, I do believe that Herbalife is a ridiculous proxy for Ackman's fund, which is what these people are betting against.
You get me an Ackman ETF with puts and calls? Then we got something to invest in or short. Until then, I don't like Herbalife as a vehicle to bash or buy Ackman. It just doesn't have enough correlation.But boy, oh boy, is it fun! At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, had no positions in the stocks mentioned.
Google Could Steal Facebook's Thunder Posted at 12:38 p.m. EDT on Tuesday, July 30 I don't know if people realize that Google (GOOG) is like Facebook (FB - Get Report) a quarter ago. Right now, the geniuses at Google -- and they are geniuses -- are trying to think of ways to make more money from advertising, and the Publicis-Omnicom deal gives me faith that they will figure out it.