In his sixth add of Herbalife Ltd.
since his buy on Feb. 4, 2013, Guru
again increased his stake by 2.01% on March 8, 2013, for a total
current shares of 16,355,131. Icahn is listed as 10% owner of
Herbalife Ltd. The current price of HLF is $40.38, with a change
from average down 3%. Founded in 1980, Herbalife Ltd. is a
leading provider of weight management and nutritional supplements
operating in 72 countries through a network of 2 million
In the first quarter of 2013, Herbalife (
) got more than its fair share of press with controversial
statements made by Gurus
of Pershing Square Capital Management LP and
of Icahn Capital Management LP, and others arguing about the
Herbalife business model. Last week New York investor and
attorney Daniel Ravicher filed paperwork in Manhattan Federal
Court to force three banks to pull back $1.2 billion of financing
for Herbalife. According to the New York Post, Ravicher filed
another separate lawsuit seeking to force Icahn to pay damages
and divest his stake in Herbalife.
With HLF stock down more than 40% from a year ago, Herbalife
defended itself against Pershing Capital, according to the Wall
Street Journal today, with a statement that said, in part:
"We regret that the National Consumers League has permitted
itself to be the mechanism by which Pershing Square continues its
attack on Herbalife. If anything, it is Pershing Square that
should be investigated by appropriate authorities. Its actions
are motivated by a reckless $1 billion bet against the company
based on knowingly false statements about Herbalife. Those
statements unquestionably cause harm to our consumers and
investors and indeed all consumers and investors."
Herbalife Ltd. has a market cap of $4.1 billion, a P/E of 9.5, a
P/S of 1.1686, and a P/B of 10.4. The company's 10-year
financials show revenue growth of 16.1% for annual rate per
share, and 23.5% over the previous 12 months. EBITDA growth was
13% over 10 years and 21.5% over the previous 12 months.
Herbalife's return on capital gets a 140, according to Joel
Greenblatt, and is ranked higher than 96% of the 123 companies in
the industry where the ROC median is 18.4.
GuruFocus performed a financial checkup on Herbalife Ltd. and
found two positive signs: First, for per share revenue, HLF shows
consistent growth with predictable revenue and earnings growth.
Second, the company's operating margin is expanding, usually a
Here's an in-depth analysis of HLF.
In the last six months, other Gurus have added or initiated
positions in HLF, including Daniel Loeb, Ken Heebner and Steven
Cohen. Joel Greenblatt bought HLF on Sept. 30, 2012 and sold out
three months later. Jeremy Grantham reduced his HLF position by
29.08% on Dec. 31, 2012.
Here's a look at Insider Trades at Herbalife Ltd.
Here's a summary of Carl Icahn's top buys, top sells and top
See a great commentary on HLF.
GuruFocus "Real Time Picks" reports the stock purchases and sales
that Gurus have made within the prior 2 weeks. The report time
lag can be as short as 2 days after the date of the transaction.
This feature is for Premium Members only. If you are not a
Premium Member, we invite you for a 7-day Free Trial.About
GuruFocus: GuruFocus.com tracks the stocks picks and portfolio
holdings of the world's best investors. This value investing site
offers stock screeners and valuation tools. And publishes daily
articles tracking the latest moves of the world's best investors.
GuruFocus also provides promising stock ideas in 3 monthly
newsletters sent to