Diamonds and Dogs
12/19/12Herbalife Ltd. (HLF)
Herbalife is losing weight today, down 12.12% at $37.35. The weight management and nutritional supplement company saw its shares crash after a CNBC report. The report stated that Bill Ackman, founder of Pershing Square Capital Management, took a short position in the company. Ackman said that after a year of research he believes Herbalife to be a "pyramid scheme." Furthermore, Ackman has been short the company for about seven to eight months and believes that there will be more downside in the company. Volume on Herbalife was at 14 million shares today, which is 4 times its average volume. The company set a new 52-week low today by around $5.00.
General Motors Company (GM)
General Motors is revving its engine today, up 6.69% at $27.20. The automobile company saw its shares spike after news was released that GM would buy shares back from the government. GM said it will purchase $5.5 billion worth of its stock back from the US Treasury. The planned sale will raise the proceeds that Treasury has recovered to $28.6 billion of the $50 billion bailout GM received. The US Treasury will take a loss on the sale; however the government offered the bailout to save jobs not to make an investment. GM management says that deal will be great for the company as it will get rid of the negative thoughts that the government has its hand in GM's pocket. GM set a new 52-week high intraday, with its previous high being $27.68.
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