According to Bidnessetc.com, recent moves are proving the Herbalife Business model to be widely accepted.
Herbalife Ltd. (HLF) stock is up 4% today, and has gained roughly 7% since Bidness Etc asked investors to go long last week. The rise today, followed the news of Capital Research increasing its stake in the company and a number of insiders taking long positions in the stock. These moves have improved investor sentiment, leading to a rise in the stock. In addition, the company’s long term prospects remain strong and Bidness Etc rates the stock a Buy at current valuations.
According to recent news, Capital Research has increased its stake in the company from 8.5% to 10.1%, joining the league of investors like Carl Icahn and Fidelity Investments, both of whom have stakes larger than 10%. After increasing its stake, Capital Research has become the third-largest shareholder in the company.
The continuing confidence of Carl Icahn and now this move by Capital Research reflects their belief that Herbalife is not a pyramid scheme and that investigations by Federal Trade Commission (FTC) are not expected cause any significant damage to the company’s reputation.
In addition, a number of insiders including Chief Operating Officer Richard Goudis, President Des Walsh, and Chief Financial Officer Desimone, have