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Bill Ackman Facing the 'Herba-Squeeze' of his Life

Intended or not, it appears everyone Ackman has ever upset since kindergarten is after him with Herbalife and have ganged up to squeeze the stock higher until he capitulates. The spat between Ackman and Carl Icahn on CNBC was probably the most entertaining half-hour of TV I have ever watched.

It's not just other investors trying to profit: Herbalife Chief Executive Officer Michael Johnson is quickly pushing for a new audit that will enable the company to buy shares and decrease the float by 30%. Investors should pay attention to Johnson's endeavor. If Herbalife succeeds, its stock could exceed $100.

If Herbalife does, and this is the key takeaway, you want to seriously consider ringing the register for at least some of your gains. Don't wait until after Ackman has already thrown in the white towel or you may face a lack of buyers.

If Herbalife isn't able to secure financing, all isn't lost by a long shot. Ackman needs regulators to rescue his position, and that hasn't happened.

At the time of publication, the author had no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

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