UPDATE: Herbalife Shares Plunge After Einhorn Questions During 1Q Call

May 1, 2012, 3:55 p.m. ET

- Hedge-fund manager David Einhorn asks questions during first-quarter conference call

-- Questions are about disclosures, sales sources and distributor rewards

-- Einhorn is known for bearish bets on companies he views as overvalued

(Adds analyst comments in the fourth, fifth and seventh paragraphs and context about Herbalife and Einhorn to sixth, eighth, ninth and 19th paragraphs; updates share movement in second paragraph)

NEW YORK (Dow Jones)--Herbalife Ltd. (HLF) shares plunged Tuesday after U.S. hedge-fund manager David Einhorn sought details from the weight-loss-products company about its disclosures, sales sources and distributor rewards as it reported its first-quarter results.

Shares were ...

http://online.wsj.com/article/BT-CO-20120501-714480.html




Herbalife shares fall after rebounding Wednesday


May 17, 2012 2:30 PM

Shares of Herbalife Ltd. declined Thursday as the stock continued to fluctuate on concerns it may become a target for short-sellers.

THE BIG PICTURE: Shares of Herbalife have fallen 40 percent this month after hedge fund manager David Einhorn criticized the company. During Herbalife's first-quarter investor call on May 1, Einhorn asked how much of the Los Angeles company's products are sold to consumers who aren't distributors, and he asked why Herbalife did not disclose a breakdown of difference types of distributors as it usually does.

Caris & Co. analyst Linda Bolton Weiser said Einhorn is known for shorting stocks, and some investors were concerned he would propose taking a short position on Herbalife shares at an investor conference on Wednesday. When that did not happen, the stock jumped 16.7 percent.

In a note to clients, Weiser upgraded Herbalife shares to "Buy" from "Average" and raised her price target to $86 per share from $39. She wrote that Herbalife's business model works and its sales in local currency are improving. She wrote that the stock is trading well below its annual highs.

Wedbush analyst Rommel Dionisio maintained an "Outperform" rating, saying he is confident in the company's business model despite Einhorn's questions.

"We believe this recent sharp selloff represents an attractive buying opportunity for investors to re-enter a blue chip name such as Herbalife," he wrote.

On May 3, Herbalife announced it would buy back $427.9 million of its own shares.

SHARE ACTION: Herbalife stock fell $4.35, or 8.8 percent, to $45.16 in afternoon trading. The shares reached a 52-week high of $73 on April 23, but between May 1 and Wednesday the shares dropped 39.7 percent.







http://www.cbsnews.com/8301-505245_162-57436491/herbalife-shares-fall-after-rebounding-wednesday/