Thursday, February 28, 2013
Herbalife--The benefit of JCP's weakness!
So if JCP trades down Herbalife will go up. Why? Because Ackman is short over 20 million shares of Herbalife and Wall Street will smell some blood in the water, and will attempt to make Ackman's Thursday just a little bit worse!
Do the math for yourself! Ackman owns about 40 million shares of JCP, and his short about the same dollar amount of Herbalife stock.
Now Wall Street dresses up in suits and pretends that their analysis of companies is so rigorous, but in reality, that 's just another show for the street. Anyone that looked at Ackman's short thesis on Herbalife will see that he is out to lunch; and since Billy owns about 40 million shares of JCP, and he has been woefully wrong--doesn't that mean he could be just as wrong on his short thesis on HLF?
But wait--there's more! Remember how Bill Ackman brought in Johnson to rescue JCP? Guess who is new boy is to help the show?
Sergio Zyman! Remember him? If not, let me give you a clue. He wrote a book.
And what did he do at Coke?
The biggest product failure in Coke's history!
And now this is Ackman's guy to help JCP! Anybody think that even Coke bottle glasses won't help the sanctimonious Ackman see straight?
You may hate the logic, but if you want to make money on Wall Street, you need cowboy, gun slinger logic, and in a few hours, Ackman is going to get shot at!
So Wall Street will gun HLF, while they lean on JCP!
How tough is that?
Yesterday, there wasn't any sellers in HLF, and they snuck the stock up to 37.44 without any problem. Today Ackman's long position in JCP gets deeper underwater, so Wall Street will try and squeeze him with his short on HLF.
It's just that simple.
So squeeze him with the support of the Street!! It's your Free Money trade of the day!!
Posted by Palmoni at 3:27 AM