Northern, WI  12/21/2012 (BasicsMedia) — On April 30th 2012 HerbaLife was cruising along at $70 p/s by May 15th shared had lost 40% in 2 weeks, this stock alone has kept a few Bearish Funds who sell short in business.  Today is a bad day for HerbaLife (NYSE:HLF) again and it will only get worse as we go into 2013 as the company has set an analyst day to review details of recent attacks by short sellers.  It comes with the territory being a public company and HerbaLife is no stranger to shorts making runs at them.

Back in May David Einhorn smashed shares of HerbaLife (NYSE:HLF) asked on a conference call with analysts and investors why Herbalife stopped providing information about its distributors in its filings. Einhorn’s concern started after Herbalife no longer provided information about distributor groups. The decision was made by Herbalife’s Chief Financial Officer John DeSimone, who took on his role in January 2010.

DeSimone decided to no longer provide information about distributor groups as it is “not valuable information to the business or investors”. On the call DeSimone said that he could provide similar breakouts in the future in a reaction to Einhorn’s concerns. Einhorn reacted by calling such additional information as being “helpful”. He asked for a breakdown of sales to Herbalife’s distributors and its consumers. Furthermore, Einhorn was particularly interested in financial incentives given by Herbalife to its supervisors when they sign up new distribution deals.

This week another prominent hedge fund jumped into the fray and investors are listening to Ackman, who runs New York hedge fund Pershing Square Capital Management LP. The shares fell 13 percent to $29.39 at 11:58 a.m. in New York, after sliding 9.8 percent yesterday and 12 percent the previous day, when Ackman first said he was shorting the stock.

“This is the highest conviction I have ever had about any investment I have ever made, full stop,” Ackman said in an interview with Bloomberg Television. “This is all-hands-on, and I have everyone in the entire organization working on this project, including two of the top law firms in the country.”

“Today’s presentation was a malicious attack on our business model based largely on outdated, distorted and inaccurate information,” the company said in an e-mailed statement after the presentation. “We operate at the highest ethical and quality standards.”

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