Carl Icahn, Herbalife (NYSE:HLF) “Strong Candidate to Go Private”

Carl Icahn, Herbalife (NYSE:HLF) “Strong Candidate to Go Private”

Carl Icahn, Herbalife (NYSE:HLF) “Strong Candidate to Go Private”


Carl Icahn continued his support Tuesday for Donald Trump saying, he will reduce the regulation of US companies.

Carl Icahn, 80 anni, said that nutrition and weight management company Herbalife (NYSE:HLF) would be a strong candidate to go private, as such a move would allow it to avoid the kind of criticism aimed at it from Pershing Square hedge fund founder William Ackman.

“If you look ahead 3 years, this economy will be a lot better if  Donald Trump gets elected” rather than Democratic candidate Hillary Clinton, Mr. Icahn said, speaking at the “Delivering Alpha” event in New York.

Donald Trump has said that Icahn would be a great US Treasury Secretary though whether the iconic hedge fund manager would commit to such a role is unclear.

Mr. Icahn expressed his frustration at US regulators Tuesday, specifically the Environmental Protection Agency (EPA) which he says has neglected to speak to him about his concerns regarding Ethanol blending requirements for the fuel refineries in his investment portfolio.

Mr. Icahn said that fear of “irrational” government regulations are a main reason why CEO’s are not re-investing in their businesses and instead buying back stock. Donald Trump would aim to reduce such regulations, he said.

Mr. Icahn also addressed his ongoing dust-up with Mr. Ackman, who in Y 2012 claimed Herbalife was running a pyramid scheme, and made a billion dollar+ wager against (shorting) the stock.

Mr. Icahn emerged later as a buyer of the shares.

Herbalife settled a probe of its sales practices with the US Federal Trade Commission (FTC) in July. Mr. Icahn has continued buying shares, and the feud with Ackman has continued.

“I think that Herbalife is certainly a candidate to go private. In fact, frankly, wearing my shareholder hat, I think Herbalife is a lot better private and getting away from this Ackman-type criticism,” Mr. Icahn said at the event. “Bill Ackman is out there driving everybody crazy, which is his right to do. He’s obsessed with this.”

Symbol Last Trade Date Change Open High Low Volume
NYSE:HLF 59.84 13 September 2016 -1.84 61.07 61.07 59.05 996,200
HeffX-LTN Analysis for HLF: Overall Short Intermediate Long
Neutral (-0.19) Bearish (-0.32) Neutral (-0.19) Neutral (-0.06)

Stay tuned…


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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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