The Battle Lines are Drawn on Herbalife (HLF) — Whether you are a bull or a bear, here are your ..
Discussed in this article: Herbalife ( $HLF )
In this video we’re looking at Herbalife ( NYSE:HLF ); why, because everybody else is. As you probably know, Carl “Tweeter ” Ichan, is long this stock, while Bill Ackman is short in a big way. Right now we’re at an inflection point; one of those guys is going to lose big-time, so far it’s been Ackman. By the way, just so you know, because you know me, I tend to just tell you what I think even if you don’t like it.
The fact that Ackman is saying that HE would give any profits he makes PERSONALLY to charity, if congress investigates this and the company implodes; he would donate his PERSONAL profits to charity. Well thanks Billy Bob, the thing is you’re trying to save your company; your personal profits here don’t even matter, so that’s totally disingenuous. He’s the kid that probably got beat up a lot in school, and so now the guy can’t, at least so far, can’t convince Wall Street that he’s right, the company’s done nothing but go up so he’s taken a show on the road and lobbying Washington, which he can under the First Amendment. But isn’t it kind of funny when you have to hear somebody from Wall Street talking about the First Amendment.
The bottom line is, somebody’s going to win out big time. So right now you’re looking at the stock, if it starts falling below this support level, you can probably put on a better short than Ackman can, I mean he’s been short from a lot lower levels, you can be short from up here, and if the stock continues to go lower you’re making a lot of money while he’s in a senator’s office talking to him about the Ponzi scheme.
So you can be making money here, but if the stocks starts falling and you short the stock, what I want you to do is, as soon as you do that you need to have a stop right up here say at $68.00, a buy stop, because this stock has been really volatile; the last time it’s fallen to the 200-day moving average it bounced, and this was kind of short killer, a bear killer. So if the stock trades lower a little bit, it may start moving higher, you don’t want to be long that stock so you keep a tight stop, a tight buy stop. Also if you’re long this stock on the breakout, guess what you’re going to do? You’re going to put a stop just below this point.