Herbalife, Are You Aware David Einhorn Plays Poker?

May 1, 2012
J. Webster
Comments Off on Herbalife, Are You Aware David Einhorn Plays Poker?

I’m guessing Herbalife wasn’t aware that Green Light Capital’s David Einhorn, the friendly hedge fund manager who asked those innocent questions on their earnings call, plays a little Poker from time to time, and quite well at that. Einhorn plays so well he finished 18th in the World Series of Poker main event.

Actually, perhaps Herbalife is aware of Einhorn’s Poker abilities and they’re just playing their own brand of Poker, trying to bluff, while behind the scenes they’re frantically trying to figure out what the hell to do. However, I don’t think it’s a good idea to refer to Einhorn’s questions as “elementary”:

Herbalife Ltd. (NYSE: HLF): Today, on Herbalife’s earnings call the company announced record results — its best quarter financial results in 32 years.

The fact that recognized short seller David Einhorn asked questions on the call put pressure on Herbalife’s stock price.

To be clear: Mr. Einhorn’s questions raised no new subjects or concerns. They were elementary questions usually asked by investors new to our industry. These are issues that have been thoroughly addressed before. Analysts and investors can review the specific answers to his questions on our website later today at www.herbalife.com.

Our business fundamentals are very strong and we are confident in our financials, our disclosures, and our network marketing business method.

We believe the drop in Herbalife’s stock price today is a buying opportunity given the strong business fundamentals and our outlook for ongoing success. We currently have $428 million in repurchase authorization.(WSJ)

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