Herbalife Ltd. (NYSE: HLF)
Herbalife was having a normal day in the market in the beginning of the trading session today. However, minutes ago, the stock started to climb. We believe we know why. Below, we’ll talk about what we’re seeing from the stock, why, and what we can expect to see from HLF ahead.
HLF Spikes Late In The Day
As mentioned above, for the most of day, Herbalife was having a relatively normal trading session. However, minutes ago, the stock started soaring. At the moment (4:01), HLF is trading at $60.68 per share after a gain of $0.46 per share (0.76%) thus far today.
Why Is Herbalife Spiking?
This is where things get interesting. HLF and Bill Ackman have been in a battle for some time. As a result, Ackman followers have decided to abandon the stock, leading to declines. However, Ackman also believed that VRX was a good investment, and breaking news shows that he made the wrong decision there.
Given recent information with regard to HLF, many were teetering on the edge of whether or not they should invest. With Ackman being wrong about Valeant, investors are now making anti-Ackman moves, causing Herbalife to spike.
What We Should Be Watching For Ahead
I’m sure that, soon enough, Bill Ackman will launch an attack directed at HLF. That’s just how these things work. So, watch for that. Also, keep a close eye on Ackman’s portfolio. As we can see from movement today, the stocks he bashes tend to move with a negative correlation to the stocks he loves.
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[Image Courtesy of Wikipedia]