Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Billionaire investor and hedge fund manager Bill Ackman initiated a short position in Herbalife around three years ago, and despite Friday's FTC announcement, he isn't ready to give up on his short thesis.
Ackman's hedge fund, Pershing Square, released a statement on Friday. The statement noted that as part of Herbalife's settlement with the FTC, it can now only compensate its distributors for "Profitable Retail Sales," which is a genuine sale made at a price above the distributor's average total cost of the product.
"In light of the fact that the FTC found that Herbalife distributors make little or no profit, or even lose money from retailing Herbalife products, there are no longer any meaningful incentives to become or remain an Herbalife distributor," Ackman wrote.
Ackman added that the agreement also calls for Herbalife to eliminate a minimum purchase requirement and other inventory loading incentives.
As such, Ackman expects Herbalife's revised business model to result in "structural changes" that will "cause the pyramid to collapse as top distributors and others take their downlines elsewhere or otherwise quit the business."
Did you like this article? Could it have been improved? Please email feedback@benzinga.com to let us know!
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.