Herbalife stocks tumbled by as much as 23 percent after hedge-fund manager David Einhorn questioned the company’s failure to disclose information about its disclosures and sales sources in its first quarter results. Wrong or right, this just shows how vulnerable stocks are from attacks and speculations. This has left Herbalife’s stocks are at its lowest in three years. However, in an official press release, Herbalife reiterated that the company stands by its strong business fundamentals. This they say represents an excellent opportunity for those planning to join the company.
Herbalife Official Response
LOS ANGELES–(BUSINESS WIRE)–Herbalife Ltd. (NYSE: HLF): Today, on Herbalife’s earnings call the company announced record results — its best quarter financial results in 32 years.
The fact that recognized short seller David Einhorn asked questions on the call put pressure on Herbalife’s stock price.
To be clear: Mr. Einhorn’s questions raised no new subjects or concerns. They were elementary questions usually asked by investors new to our industry. These are issues that have been thoroughly addressed before. Analysts and investors can review the specific answers to his questions on our website later today at www.herbalife.com.
Our business fundamentals are very strong and we are confident in our financials, our disclosures, and our network marketing business method.
We believe the drop in Herbalife’s stock price today is a buying opportunity given the strong business fundamentals and our outlook for ongoing success. We currently have $428 million in repurchase authorization.