Bill Ackman and Carl Icahn’s 2016 just keeps getting worse, and it’s looking more and more like the two billionaires’ battle over controversial multi-level marketing (MLM) nutrition company Herbalife Ltd. HLF 0.15% may end up a war of attrition.
Both investors have taken major body blows this week.
Rough Week
Hertz Global Holdings, Inc NYSEHTZ shares plummeted 22 percent on Tuesday following a horrible Q3 earnings report. As of June, Icahn held a 15.2 percent stake in the company.
Ackman favorite Valeant Pharmaceuticals Int Inc VRX 7.02%endured its own nightmare on Tuesday, falling 21.8 percent on similarly disappointing Q3 numbers.
Ackman’s most recent big investment idea, Chipotle Mexican Grill, Inc. CMG 1.34%, is down 9 percent since he disclosed a nearly 10 percent stake in the company back in September.
Herbalife
While each billionaire has his own unique problems, the two giants are going head-to-head on Herbalife. Ackman has been short the controversial company since late 2012. Icahn has been long Herbalife since early 2013, and upped his stake to 23.1 percent.
Herbalife shares have been all over the map in 2016. The stock was up more than 25 percent on the year in late August following a $200 million FTC settlement in July related to customer deception.
However, the stock is down…
Click here to continue reading
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!
