NEW YORK (TheStreet) -- Shares of Herbalife (HLF) are soaring 24.60% to $67.31 on very heavy trading, more than 14 times the average volume, after hedge fund manager Bill Ackman's presentation on the investigation of the nutrition company this morning disappointed investors after he told CNBC he would expose Herbalife as an "incredible fraud" and deal the company a "death blow."
An Herbalife spokesman on Tuesday rejected Ackerman's claims, saying they were fabricated, according to the Financial Post.
Ackman has been betting against Herbalife since 2012, claiming it runs an illegal pyramid selling scheme, something the company denies, the Financial Times reports.
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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."