NEW YORK (TheStreet) -- Herbalife (HLF) shares have been halted on the stock exchange on the news that the FTC has opened an investigation into the company. The stock was up 4.5% today before the stoppage.
The nutrition and diet company has been in a tussle recently with billionaire investor Bill Ackman, who most recently accused the company of breaking marketing laws in China. Ackman has also been pushing Congress to investigate the company.
Ackman has hung on to his shorting of Herbalife and has been accused of using his political connections to ensure that his bet is right.
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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."