Since my original post in January, and follow-up in February, I have seen literally nothing in the price action to back me off the Herbalife bear thesis.
Updating the daily chart below, the threat of a pennant breakdown within the context of a downtrend appears to be imminent and menacing. After the mid-February rally after earnings and news of Carl Icahn’s long position in the company, the stock has since sold off. Furthermore, we have yet to see buyers of size present themselves in a meaningful way.
Perhaps Mr. Icahn will come through in the end and save the day for HLF. But his track record is not as exciting as Gordon Gekko’s loose portrayal of him on the big screen. Instead of blindly worshipping him out of 1980’s folklore, I am going with short-seller Bill Ackman, the young gun, on this one.
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me too! yeah buddy