Is Ackman right about Herbalife?

Its a straight up ponzi.

It gives incentives for reps to artificially inflate sales.

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Its a straight up ponzi.

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It's not technically a Ponzi scheme, which takes money from current 'investors' to pay old 'investors'.

I'm not an expert, but do believe that the majority of sales are to distributors for the purpose of resale, but they are probably not usually resold. As people sign on new distributors, they received a commission on all sales of distributors under them, so it is a pyramid scheme/model.

None of this really matters to an investor UNLESS a government entity decides it's some type of fraud. The question isn't whether they are a pyramid or not (which they no doubt are), the question is whether the gubmint will decide they have committed some kind of fraud.

as I see it anyway

I think the only herbalife things I've seen in the past year are written in Spanish, typically spanish phase, herbalife, and the phone number.

I would say a good litmus test would be to call the phone number, and see what they try to sell you (actual product or a distributor type deal).

Basically says nothing but who knows. Ackman making money off his plays as well.
LINK

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Ackman said at one point they need the stock to go to like $30 to make profit.

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Ha, well then he will obviously continue to hammer them.