Bill Ackman Thinks Herbalife Is A Company 'Which Should Not Exist', Will Miss Earnings 'Massively'

The Founder and CEO of the No. 1 hedge fund, Pershing Square’s Bill Ackman, appeared on CNBC Wednesday and continued his long-standing criticism of Herbalife Ltd. HLF.

Ackman thought the company “should not exist” and its going to have a massive miss on earnings which will require it to “redo guidance.”

“When you shine sunlight on Madoff it makes it difficult for Madoff to find victims. The same thing is happening at Herbalife,” Ackman said.

Ackman claimed there is “a flight of top distributors, senior employees from around the world, contacting [Pershing Square], contacting the government, sharing information" on Herbalife.

“The stock has been moving lower recently, Ackman said, because the company is going to miss earnings and will have to redo its guidance. He also said there's a massive seller in the market and that can be seen by looking at short-term option trading,” according to the CNBC report.

Ackman also stated that Herbalife may be his last “public short.”

Herbalife Ltd. traded at $29.40 in the pre-market, down 3.35 percent.