So I'm reading the New York Times a few weeks ago and this was on the front page:
https://www.nytimes.com/2014/03/10/business/staking-1-billion-that-herbalife-will-fail-then-ackman-lobbying-to-bring-it-down.html?_r=0
Allegedly, this company Herbalife has shady business practices and is a bit of a pyramid scheme, at least that is what is being presumed.
So I ask, "Who in the world would want to buy Herbalife stock at this moment and who wouldn't dump it?"
Furthermore, what politician would allow themselves to be scrutinized if they answered to the lobbying of this Hedge Fund billionaire when he himself has a billion bet against the company and this is public information?
Lo and behold....the next day...
This politician was the one who got the ball rolling against Herbalife, yet he claims he was UNAWARE that a BILLION dollars was being bet against the company in an effort to gain money on a short...
https://www.bostonglobe.com/news/politics/2014/03/10/senator-edward-markey-wrote-letters-that-helped-activist-investor-who-sought-drive-down-herbalife-stock/KuUVnx0Rk1apbrWZmGDxWJ/story.html
Finally, two days later:
Here comes the FTC opening an investigation against Herbalife.
https://dealbook.nytimes.com/2014/03/12/herbalife-discloses-f-t-c-inquiry/
What the hell is going on here?
Wallstreetcappers, or anyone else who understands what is going on behind the scenes, is this just pure unadulterated palm greasing by Wall Street to the US Government right in the face of every US citizen???
We have the cast of characters:
One side: Herbalife
Other side: Hedge Fund Manager, Senator, FTC
It's like it's scripted for Hollywood!
I'm not for or against this company, and I must say I do not like their business model (but we could say that about MANY companies) but their certainly are thousands of jobs tied to it that will go up in smoke if this hedge fund manager succeeds.
Anyone have answers to my questions?
Lastly, who in the world WOULDN'T dump this stock right now!!
It's $55 down from a peak of $80 when the above Senator accused it of fraudulent business practices. How can major investors still hold onto this stock??? And who in their right mind would buy it? The US Gov. is coming after it as we speak and a BILLION dollars is being bet against it?