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HERBALIFE UNDER ATTACK BY EX - CON AGAIN!
X-con (maybe) Minow Attacks Herbalife Again!
24 April 2008
Ex-con who claims to have turned fraud fighter ‘Barry Minkow’ has released a press release attacking Herbalife (NYSE: HLF). The convicted felon called the company a "financial crime in progress," he wrote about the "Top Ten Red Flags of Fraud at Herbalife."
Minkow says that the venerable Herbalife is, "a global network marketing company that sells weight-management, nutrition, and personal care products intended to support a healthy lifestyle," but Minkow says it is a fraud.
Minkow wrote about a the number of Corporate Executives dumping stock and share repurchases he thinks are indications that the company's business model is not sustainable. He also hired a Private Investigator that discovered Gregory Probert, the president and chief operating officer did not have an M.B.A. as he claimed.
Editors Note: In the report Minkow wrote that "Herbalife's expansion has reached over 80 percent of the world's population. Ed. Note: I bet Herbalife wishes this were true!
Minkow disclosed he has a short position in the stock and reported that "In April of 2008, Mr. Minkow once again had an in-person meeting at the Los Angeles office of the Securities and Exchange Commission and informed the Commission that he was now shorting Herbalife stock to finance the continued investigation of Herbalife in China and to produce You Tube videos of Herbalife victims. He also said he gave the FBI and SEC copies of his trading account.
Last year, Minkow pulled a similar trick with Usana Health Sciences (NASDAQ: USNA), another MLM company. The SEC looked and it and dropped it’s investigation NO action. However USANA shares dropped from $40-$50 bucks a share down to $20-30 despite the fact first Quarter earnings 2008 were above first Quarter 2007. At the time of this writing Herblife has dropped from about $46-50 bucks a share to $44-48 not bad.
Tags: barry minkow, BarryMinkow, herbalife, HLF, Minkow, Usana, USNA
Minkows Press Release with his normal hype to get stock to go down:
BARRY MINKOW (WITH SHADY PAST) ATTACKS CHINESE OPERATIONS
Attacks Herbalife operations China claiming they are in violation of their agreement with the Chinese Government. Minkow is the guy that slammed USANA and is being sued by them. Minkow is famous for his junk bond scandal of that put him in jail (actually Club Fed).
Edited: HERBALIFE PRESS RELEASE REPLY
LOS ANGELES, Nov 05, 2007 (BUSINESS WIRE) -- HLF Herbalife (NYSE:HLF) issued a statement in response to a letter written by Barry Minkow of the Fraud Discovery Institute.
We have confidence in our direct-selling business model, our integrity and transparency as a NYSE-listed company and the fundamentals of our business. With regard to our business in the People's Republic of China, the Chinese government thoroughly reviewed our company, our global operating model and our specific operating plan in China as part of the licensing process. We received our first direct-selling license in China in March 2007 and subsequently received an expanded license in July 2007, which further validated the legitimacy of our operating plan in China. We believe our China marketing plan is compliant with all applicable laws, as are our marketing plans and business practices worldwide.
Barry Minkow states in the footnotes to his letter, he is hoping to use video gathered during his investigation as a stepping stone to a weekly television show that will benefit him financially. Minkow is a convicted felon trying to create a sensational story by drafting a 90-page letter, cobbling together one-party consent undercover video and calling it "evidence."
We stand behind the integrity of our company
.
Link to full relelease: http://www.tradingmarkets.com/.site/news/Stock%20News/786843/
BARRY MINKOW (WITH SHADY PAST) NEXT COMMENT
“In fact, if the company can demonstrate that no less than 90 percent of its distributors actually do not fail within 12 to 14 months after starting an Herbalife business, then FDI will recant all of the reports’ findings, take down the doomed by design Web site, stop filming the documentary and write a formal apology to Mr. Johnson and the Board - but the reason no specific answers were given in writing in defense of the company fundamentals - which is the very motive for our report, is that Herbalife knows over 82 percent of all the compensation paid to distributors goes to less than 1 percent of its 1.5 million ‘doomed to failure’ distributors.”
DID MINKOW PULL A COUPE BY SHORTING HERBALIFE STOCK? LIKE USANA?
Don't think so! Dip not a Dive! Click Below
.Tags: barry minkow, BarryMinkow, herbalife, HLF, Minkow, Usana, USNA
