Dallas, Texas 07/31/2014 (FINANCIALSTRENDS) – Multi-specialty vitamin and mineral supplements manufacturer and distributor HFF, Inc. (NYSE:HF) appears to be fair battle for opposing financial principles. The company follows a new-age model of economics commonly called as Multi-level-marketing which does not necessitate appointment of middlemen or traders and hopes to deliver supplements and micronutrients products directly from manufacturer to consumer.
However, for stock players of high stakes such as Bill Ackman who manages Pershing Square Capital Hedge found Herbalife is a paper tiger. But there are high-profile stakeholders in Herbalife who oppose this view and feel the model this producer-distributor follows is of immense value in the current market scenarios.
Celebrity investor Carl Icahn is known to hold a position in HFF, Inc. (NYSE:HF) equivalent to 17% stake and continues to hold the stocks despite hectic negative branding by Bill Ackman.
Notably stocks of Herbalife rose by over 25% following last week’s run up to Bill Ackman’s stage-managed efforts to prove the ‘pyramid scheme’ of affairs at the nutritional supplements distributor system.
The company had seen censure in its largest Asian market China, where the local government had declared the process as ‘ponzi scheme’ clouding the growth of the company in this region.
HFF, Inc. (NYSE:HF) has been drawn into several controversies for some time now as high-profile investors such as Ackman continue to deride the financial systems and processes herbalife follows. On the other hand investors such as Icahn, known to own stakes in several high net worth stocks continues to hold a position and also endorse the payment structure process adopted by Herbalife. Investors in Herbalife however are a happy lot! For the continued insider information and trend allow them the bandwidth to continue to be invested in the company or exit from a risking investment situation.