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FBN’s Charlie Gasparino on Pershing Square Capital’s Bill Ackman’s shorting of Herbalife.
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At Woodward got access excited that he's not at all but guys did about Herbalife Charlie let's talk about -- heroic love Herbalife okay.
Shares are down today selling -- here everybody sit down.
At -- near the price where bill Blackmun announced his now infamous short but are investors enactments -- getting a little Lansing and concerned about his very public feuding about the company.
Who cares implicitly if they're making money.
I will say this -- and you should look at it like a longer chart like a two month chart of verbal if you put it up there it's kind of interest in.
The stock went way down to 24 yes I believe it went way up to 46.
And now it's coming down again OK so whereabouts.
Right -- the level where more -- the short at around forty when when he announced that things so.
This is -- there is that you know Charlie Brady.
It's called the C.
It's a short sellers -- tree okay we won't -- at the dream but -- if people could figure out.
It's -- -- and eight and engage traders because they traders love to trade on the stocks.
But here's what we know now about what -- and you know -- -- is involved in a very very public feud about this -- with Carl Icahn warring with the company.
His investors and we're getting this from sources close to some of the major investors they are getting -- They may redeem shares -- let's say they are.
But they are getting very antsy about this public -- we should point out that when Dan Loeb of third point investors put his money into this thing that's public Carl Icahn.
People who suggest he's taken some position it's in unclear if the advisory just.
Finally he hates.
-- creating all this stuff.
But it.
What would -- investors big investors in in I and that act which funds -- are clearly worried about is a short squeeze something that.
That that takes the stock a lot higher as you know he said point blank.
He's got a billion dollar is that a lot of money riding on -- terms of you know billion dollar short -- along those lines want to write it to zero.
And I can tell you that the investors I know this for fact investors again Nancy when people get Nancy they may redeem shares have they redeem shares I don't know -- does not call me back I'm listening.
But I can tell you that they're getting antsy when they get Nancy that's when they start pulling money that we -- -- had a couple things about acting -- someone.
I filed in my father's career I've known since at least the financial crisis and one of the stocks -- -- financial crisis that he was short was MBIA.
That was -- -- made a lot of money right at the financial crisis I started getting into it and India -- what they did their bond insurer and -- insured.
Some of the toxic debt that was held by some of the banks.
Act and had a short on them part for for two years before it realized it was may be over two years before.
The other is still rubber met the road during the financial crisis and the imploded and he made a lot of money -- of -- -- wrote it down to about sex yeah I mean think about that in this is a guy that.
Takes these long term -- he's been proven right on some stuff.
I will say -- the flip side is this you look at his record when it comes to retail like JC Penney.
Does not do very well Herbalife is a retail stock is -- think it's a terrific retailer of protein shakes whatever they may be the vitamin supplements stuff.
It's very controversial.
Here he says it's a pyramid schemes -- impairments -- needs they don't really sell the products what they do is to get distributors to sell the products that they have feedback to the company.
And the sales of the distributors are just.
In the long term is not is not arrive at about Herbalife has been in business for decades selves as one heck of a long pyramid scheme if that's what it is.
Maybe it is I mean you should we should point out that -- CIA was in.
-- -- think this is for a long time before they went on there.
-- we -- -- I interviewed the gentleman from from Herbalife there is -- does the president of the company.
-- back we've looked -- macro do you make of back he answered every question straight up.
At -- has yet to come on to answer my questions.
But I will tell you this you know whether he's right or wrong I'm covering this like baseball.
Right now his investors are getting -- the national debt -- -- -- -- They often redeemed as we point out when Steve -- this investors get -- They're probably gonna -- big time next month no look today is very Silicon Valley really high -- that button down shirt with the blue what other good it's not quite a -- examples of made the purchases of canals and canal and I want looks good.
The close it but -- having their picture I -- night.
I feel kind of comfortable scenario only comfortable goes on -- yesterday.
-- missed yes I was at a party I'll get to next here.
