After making Ackman’s bear thesis look foolish for much of last year, HLF is now a broken chart. Even before today’s plunge on Ackman’s latest comments, you can see that declining 200-day moving averages.
When it comes to heavily-shorted stocks, when the shorts actually do get it right things can get ugly, quick, to the downside.
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HLF is the perfect example for that statement “irrational longer than you can stay solvent.”
I believe Ackman’s thesis is 100% correct in that HLF is a scam stock. The market can certainly shrug someone off if they want to though.
It defied him last year. This year looks like a different story.