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Whitney Tilson On Bill Ackman's Short Position In Whole Foods: 'This Is One Of The Dumbest Rumors I've Ever Heard'

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Whitney Tilson On Bill Ackman's Short Position In Whole Foods: 'This Is One Of The Dumbest Rumors I've Ever Heard'
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Speaking to Benzinga, Kase Capital Management Managing Partner Whitney Tilson said that a rumor of Pershing Square’s Bill Ackman taking a short position in Whole Foods Market, Inc. (NASDAQ: WFM) is “one of the dumbest rumors” he’s ever heard.

Tilson said that he hasn’t spoken with Ackman about it, but mentioned that Ackman has publicly eschewed any more activist short campaigns.

Tilson added that Ackman also wouldn’t take on another campaign while the Herbalife Ltd. (NYSE: HLF) one is still ongoing.

“Whole Foods is the exact opposite of the type of company that Bill would target,” Tilson said. “While the valuation looks a little rich, it has decent margins and returns on capital, a cash-rich balance sheet and generates large amounts of free cash flow.”

Whole Foods was trading 0.88 percent higher in Tuesday's session. Herbalife was up 2.44 percent.

Brianna Valleskey contributed to this report.

Image credit: Perez49, Wikimedia

Latest Ratings for WFM

DateFirmActionFromTo
Nov 2016Bank of AmericaDowngradesNeutralUnderperform
Sep 2016BarclaysInitiates Coverage onEqual-Weight
Sep 2016CitigroupMaintainsNeutral

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Posted-In: Bill Ackman Herbalife Kase Capital Management Pershing SquareAnalyst Color Rumors Exclusives Analyst Ratings Best of Benzinga

 

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