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Daniel Loeb Counters Bill Ackman by Taking 8 Percent Herbalife Stake
1/9/2013 1:00:00 PM
"Event-driven value investor"
viewed Herbalife (
)'s stock price drop due to
's $1 billion short announcement as an opportunity to buy a lot
of the company.
GuruFocus Real Time Picks
reports that Loeb has purchased 8.9 million shares of Herbalife,
an 8.24% stake in the company, on Jan. 3, 2012. He filed a 13G
with the SEC, meaning he does not have activist intentions.
HLF data by GuruFocus.com
In the past ten years, Herbalife has increased its revenue almost every year, and produced a profit in nine out of the ten years. It has produced free cash flow for the past ten years as well, generating a record $419 million in 2011.
The company has been aggressive about repurchasing shares in recent years. Since 2006, its shares outstanding declined from 143 million to 112 million.
Herbalife has a P/E of 10.3, P/B of 10.7 and P/S of 1.5, according to its 10-year financials.
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