Herbalife or Herbadeath?….and Social Markets are Here to Stay!

Herbalife $HLF is at the center of a huge battle at the moment. Wall Street and the Hedge Funds are all engaged in the drama. Old media is having a field day (an always needed ratings bonanza). I am excited obviously because the social web has allowed so many more people to be engaged in the event.

It’s messy, it’s ugly and it’s also beautiful.

The financial markets and Wall Street are in a violent shake out. Forget worrying and arguing about when it started, focus on the future and for the moment, the speed at which the changes are accelerating.

Most people hate the players. That will never change. Money and greed…money and greed.

It’s not CNBC’s fault. There is no conspiracy theory. The game is the game. The tools are just different and the players names have changed.

Kidd Dynamite (a member of the Stocktwits blog network) has covered the Herbalife drama, beautifully. He’s writing about it, he’s sharing the important links and most interestingly for me, has a position he’s disclosed.

By following his Stocktwits stream and his blog, I have stayed on top of the event without a huge time suck.

Quick Summary:

1. Herbalife has moved from $45 to $25 and now back to $40 in the span of a month.

2. Bill Ackman ‘tipped’ the downward move by declaring it was going to ‘ZERO’.

3. The defense of Herbalife is now in full force.

As for tomorrow…TBD!

Why is this so interesting for the social web and Wall Street?

The players have never had a bigger arsenal of media tools to choose from to help ‘tip’ their positions.

They have never been smarter about using them.

These tools are ALWAYS ON. No one channel is enough to cover it. Ten CNBC’s wont matter. If the SEC quadrupled in size, they would be chasing the wrong people. We already let the bad guys get away.

The walls have come down on Wall Street and investment research. It’s pretty cool to watch and participate.

6 comments

  1. JLM says:

    .

    The self interest and lack of integrity in the discussion surrounding Herbalife — regardless of which side one might champion — is appalling.

    I am totally uncomfortable with the proseytizing which continues to occur and becomes the driver rather than analysis of objective fact.

    You are absolutely correct — the game is the game. The game has become hockey with a smidgen of NASCAR.

    This is both the best and worst of the Internet but it is the worst of integrity in the securities markets.

    Some folks should go to jail for their utterances related to this stock.
    .

    • some folks should have gone to jail in every era. Right now, for the lack of punishment for the last one, we have a new wild west. jail will come for some as they explore. as for the ‘worst’ for the integrities of the stock market you are WAY wrong. Allowing the mergers and IPO’s of investment banks and the ‘chinese walls’ was the worst thing for the securities market.

      • JLM says:

        .
        Actually public beheadings on the steps of the NYSE would be more effective.

        Big difference with Herbalife than say Enron is the feeding frenzy that is happening on the other side of the computer screen. The manipulation of public sentiment rather than the manipulation of the company’s books.

        Worst thing for the securities markets?

        Same church, first row — just vying for who gets the aisle seat.
        .

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