Herb Greenberg, a stocks commentator for CNBC did a ten-month investigation of multi-level marketing company Herbalife. Its conclusion is this 20 minute documentary, and the timing couldn’t be better. Herbalife has been accused of being a pyramid scheme again, this time by Bill Ackman of Pershing Square.
Despite the fact that CEO Michael Johnson claims he’s never heard of Herbalife being referred to as a scam, there are plenty of people who will tell you different. This documentary is a very, very good piece and well worth the time to watch.
Herbalife (NYSE: HLF) has been hit by a short seller again. Earlier this year it was David Einhorn simply asking questions about the business. This time it is Bill Ackman calling Herbalife a pyramid scheme and laying out his case.
Pyramid scheme allegations are nothing new. Each time, Herbalife vehemently denies it is a pyramid scheme, and says it’s a legitimate company, with legitimate products, and a legitimate business opportunity. It is this “business opportunity” that merits the pyramid scheme allegations.
Herb Greenberg of CNBC has been researching Herbalife for a long time. Back in May, Greeberg pointed out the reasons he thinks investors should worry about Herbalife: Continue reading
More delusional talk from Patrick Byrne, CEO of POS Overstock.com. From Herb Greenberg at Marketwatch:
Speaking on the Fox Business Channel today to my friend Liz Claman, [Byrne] said:
“I think that there’s been an unhealthy collusion developed between certain short sellers and certain journalists. They center around your competitor, CNBC. I happen to know for a fact that there’s a fax machine in the CNBC offices where hedge funds send instructions and journalists sit around and take instructions.”
Liz quickly responded:
“Well I worked in CNBC and I never saw that fax machine.”
Of course she didn’t, because there is no such fax machine!
Why, oh why does Herb have to leave journalism? And why don’t I get those special faxes from the Sith Lord???
The “Black Ops” train at Overstock.com (NASDAQ:OSTK) has been chugging full steam ahead over the last month, so that can only mean one thing… Patrick Byrne and his minions have something to hide.
And indeed, the fourth quarter financial results were not so good. So in order to deflect your attention from the numbers and the facts, the so-called “executives” spend their time smearing those who criticize the company. Executives take pot shots at writers who question the company and its management… writers like Herb Greenberg, Gary Weiss, Floyd Norris, Zac Bissonnette, and others. And then there’s Sam Antar.
Sure, Sam Antar is an easy target for Bryne and his lead stalker, Judd Bagley. After all, he is a convicted felon because of his role in the fraudulent family business, Crazy Eddie, which caused over a hundred million dollars in losses. But even when doing the right thing, Sam’s still a target… he decided to give law enforcement the goods on the Crazy Eddie business. Of course, instead of portraying this as an individual who took responsibility for his actions and did the right thing by confessing, Sam is vilified as a rat. He can’t win! Continue reading