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RallyCry (< 20)

New Head of FTC

Recs

3

February 28, 2013 – Comments (1) | RELATED TICKERS: HLF

http://www.washingtontimes.com/news/2013/feb/28/obama-name-edith-ramirez-lead-ftc/

From the Washington Times Report: 

Over the past few years, Ramirez has been instrumental in ensuring there is robust competition and innovation in the high-tech marketplace and has worked hard to protect the most vulnerable communities,” an unnamed White House official said, in Politico

You have to wonder if this appointment makes it anymore likely that the FTC will bring action against Herbalife (HLF) given Bill Ackman's declaration that the company preys on the most vulnerable communities. This may be the sort of case that could give Ramirez some notoriety as advancing the agenda of the most vulnerable communities, if in fact the company is engaged in these activities.

Rally 

1 Comments – Post Your Own

#1) On February 28, 2013 at 9:17 AM, RallyCry (< 20) wrote:

I should note that the long side of the HLF trade has some major catalysts short term as Carl Icahn will be exercising his call options over the next couple of weeks. This activity will remove a large number of shares eligible to be shorted from the the float. Shares available to short are scarce to start with since Ackman's short position takes up 90% or more of the trade. I think we could see HLF gap up to the 40s or 50s fairly easily in early March.

I think the Ramirez appointment represents a longer term short catalyst if the FTC decides to bring a case against Herbalife which would certainly have a depressing effect on share price.

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