DIN is tearing it up and HLF is getting torn up
DIN has been on an absolute tear since I wrote about it earlier this week, up 6.5% and counting. More details of Mick McGuire's plan for the company have emerged. The centerpiece of his play for the company is for it to pay out a $6 per share dividend and for that divvy to grow in future years. As I mentioned in the previous piece, if he gets his way at a more than solid 5% yield the stock would trade at nearly $100 per share. I have a sneaking suspicion that this is going to be one of those cases where a company's products are so lame that I cannot bring myself to buy them in real life yet the special situation causes the shares tonrisensignificantly none the less. Oh we'll, at least I'll get some CAPS POINTS:). Here's the latest on the situation courtesy of ValueWalk.
Marcato Capital Goes Activist On DineEquity, Demands Dividend
At the other end of the spectrum, I bring you Bill Ackman's newest short position, Herbalife. I can't say that I find this one terribly surprising. I personally have always found the company to be somewhat ponsi scheme-like. Not to mention the fact that in my opinion many of the supplements that it peddles probably actually aren't even that good for you. It seems to me that many people take entirely too many pills nowadays. Most of the vitamins that you need can be consumed naturally by eating healthy, balanced meals.
I really don't short things any more, but for those of you who do I bet that HLF's drop has a ways to go.
Ackman: Why I'm Shorting Herbalife
Thanks for reading everyone. Have a great night!