NEW YORK (TheStreet) -- Shares of Herbalife Ltd. (HLF) are soaring 7.42% to $58.03 after hedge fund manager and activist investor Bill Ackman presented his investigation today of the global nutrition company's "pyramid scheme", targeting sales to Latinos and other lower-income socioeconomic groups.
Earlier, Herbalife said a former Federal Trade Commission adviser backed the company's U.S. business model.
Shares of the company fell $6 yesterday as Ackman vowed to unveil Herbalife as a massive fraud in his presentation.
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Herbalife CFO John DeSimone, in an interview with CNBC yesterday, said, "his [Ackman's] bark is always worse than his bite."
"There's no doubt he's missing the real analysis, the real research. What he's missing is that fundamentally millions of people use the product and enjoy the product," DeSimone added.
Separately, 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 some important positives, 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 revenue growth, notable return on equity, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."