Will Bill Ackman's Speech Hurt Hearbalife (HLF)?

NEW YORK (TheStreet) -- Herbalife (HLF) will be under much scrutiny ahead of a presentation today by billionaire detractor Bill Ackman in China, where he plans to expose company documents obtained by a former employee that he claims will show Herbalife broke Chinese direct selling and multi-level marketing laws.

The webcast presentation is set for 2 p.m. ET.

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Ackman and Herbalife have been in the news since a New York Times article came out yesterday accusing the hedge fund manager of shorting a billion dollars in Herbalife stock on the assumption that the nutrition and weight management producer would fail, and then using political leverage in Washington to ensure that it happened.

Herbalife has already responded to today's presentation with a spokeswoman for the company saying in an email alert, "Having failed to make his case on Wall Street, Bill Ackman took his fight to Washington, D.C., and the states. Now that those efforts to buy his way to an investigation have been exposed, he is going to China. We are confident in the strength of our consumption-based business model in China."

HLF ChartHLF data by YCharts

TheStreet Ratings team rates HERBALIFE LTD as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate HERBALIFE LTD (HLF) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

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