Gasparino on Herbalife's Earnings Call
FBN's Charlie Gasparino on Herbalife's conference call.
- Duration 5:58
- Date Feb 20, 2013
FBN's Charlie Gasparino on Herbalife's conference call.
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-- -- -- among storm to another the live posting a rise in profit an improved outlook for the coming year.
And confirming our very on Charlie Gasparino is reporting of a stock buyback program Charlie here with the latest -- sales up for the company is analyst conference call today.
I don't know why the Wall Street Journal came out with kind of a bizarre story that said even though that the company announced that they could they were likely to do buyback program.
That after we reported that they were starting to buy back -- -- slowly but starting to buy back they came out a story that kind of misled the markets so they weren't buy back as we know today.
They are they are -- and it's fairly significant they -- through apparently through half.
There are a billion dollars that they had authorized them to buy back you know a therapist at last that the last meaning that they -- Today was the fourth quarter earnings and the conference call fourth quarter earnings after the bell yes they conference call today but the see it with the CEO Michael Johnson and as -- to president.
Kind of interest being sort of things to touch and we should point out the shares are down after going up.
-- -- -- -- lots of stuff going on you know Carl Icahn put money in better than expected earnings.
Be held this was kind of interest and yes they said they buried they do nerve to repurchase program -- about halfway through the billion they may do more even -- stock is down.
Here's why I think the stock is down Herbalife will more clearly delineate between customers and distributors that's from the CEO today Michael Johnson.
What does that mean well we do know Theres no we didn't Chevrolet says they have been contacted by the FTC.
Federal Trade Commission which could.
Court could deem it -- -- these upon appear -- that's would bill -- in the short seller on the stock is saying everything so that's not happening but.
They have been contacted they've confirmed by the Securities and Exchange Commission the SEC.
What is the SEC worry about with these well not necessarily -- that's a pyramid scheme they are worried about whether Herbalife.
Properly disclose its discloses its financials.
When you see a company right now seem we're gonna more clearly delineate between customers and distributors which is that -- part of its business my right they have distributors distributors get paid defeat.
To get and presumably they customers would act when -- -- is that -- equal to distribute is doing is paying fees are not getting enough customers hence it's a pyramid scheme that's gonna.
Collapse at some point.
When you can't get any more distributors.
They're gonna clearly delineate between into that means they expect I think you know this is Mike putting -- Report is that on that they expect some trouble from the SEC or looking to head off trouble from the SEC on -- so two things if you're.
Worried about the stock you know at least in the mid term yeah we do have to worry about the overhang of an SEC investigation and -- and find -- sanctioned in some way.
Because of -- of this disclosure issue that they are pointing out they're pointing out that they need to do better if that's what they're saying.
We can bet the SEC is gonna say the same thing.
-- -- comments from act when we were talking yesterday that we know he's gonna go through these latest results with a fine -- come -- looking for something to bolster his argument.
No he's not saying anything I'd I'd I'd -- you know email contact with the media Jeff comment on this right now.
I think at some point he will come out with with that you -- stories you know.
He's getting a lot of negative precedent it was a story in the Wall Street Journal they and the editorial page -- -- places in which took.
Took sort of it took issue with him fresh trying to as you know was home Jenkins and I think he's really -- -- home and took issue -- act means attempt to try to give regulators.
Two 22 close down or to sanction.
I will say this about bill I've known for a long time.
He's really Smart he's generally on to something that's -- I can tell you whether this is a pyramid -- and -- When I -- does wolf one of the things he's the president of -- was here on Fox Business one of the things that I couldn't get my hands around was this notion of distributors as customers.
That you know these people that actually it's for school -- -- that they actually consume the product as well.
-- I'm just generally drop but we are -- being told attack -- was not allowed to ask questions on the conference call.
Yes okay -- final and he's got it is not quite an investor in the stock he's got out like -- can you say he's an analyst.
-- -- the reports are that Akron was asked.
-- tried to get in on the conference groups told to come -- no but I knew that did you try to get on the cover that I don't not.
Because I could probably going Jackman probably -- hit back.
Bridge where they would let me settings on the call was unable to ask question you couldn't ask a question either -- as well obviously it's who we got -- herbalist spokesman didn't respond to requests for comment -- Persian square.
Also -- when he's out with headlights we should point out yeah Acco -- of which is what he's what he's saying is that.
Since the firm wasn't permitted -- -- -- -- -- it wasn't as he tried but yeah -- understand.
Analyst tried several times to ask questions well man and a -- -- Other -- impact come there wasn't it wasn't quite act was it was a it was analysis that Persian quick it was time it was trying to get -- -- US -- that you predicted that the CEO is going to be very.
Practiced very are -- -- it by wrote NYC yeah I think so I mean I think he was very much in the confines of what -- if you look at what these if you look at.
It's -- that there is Walsh.
It's played a role in -- -- is I think a better spokesman for the current company right election is anything wrong with mr.
Johnson Michael -- I don't know.
But it does Walsh is a lose lose -- -- his feet if you notice handled a lot of questions yes -- handled the questions about the SEC -- And who contacted who clearly they contacted the FC but the SEC contacted him because they've obviously started some sort of informal inquiry into the company.
And I think it's over these disclosures.
I think it is funny that act which right.
But that it's a cheap headline -- -- no idea -- Levy did you know it was -- Canada this and -- eight unless I like about at least at least in Paris -- applicable.
Charlie Gasparino currently a great stuff -- thank you stay tuned as they say appreciate it alright.