Reuters Insider - Trading at Noon: Herbalife stock drops on news of probe

Pacific Ventures

23/01/2014 18:50

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 Source:             Thomson Reuters                                   
                                                                       
 Description:        Massachusetts Senator Edward Markey is asking the 
                     SEC and the FTC for more information about the    
                     business practices of Herbalife.                  
 
 
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Transcript (May be auto-generated)

 A US senator wants an investigation. In two Herbalife. Let's get right to with 
the stock is plunging 13%. We have Spain Europe's. -- she is our reporter in 
Boston saying you just got off the phone with senator Ed Markey office. What's 
the latest news on us. Good morning yes. Senator Markey and from Massachusetts 
Democrat is now looking into the case against her life or on Herbalife. And 
Saturn and his staff person says that he's been involved in this since last 
summer. And today he sent letters to not only the company Herbalife itself but 
also to be at peak peak and to the FT CFTC. And in what he's calling -- fact 
finding mission. So what prompted senator Markey to send these letters exactly. 
He says that he's been in touch with some constituents here in Massachusetts and
-- in one family. That alleges that -- good luck to 130000. Dollars on its 
involvement with Herbalife. And another woman who says that she's been pressured
by Herbalife to keep buying more public product. Ed to sort of rise up and me. 
Church hill regime may have. So again he's kind of jumping on potential here 
that this is a pyramid scheme he also as you mentioned sent a letter. To the CEO
of Herbalife what's he looking for an. He's asking. Michael Johnson in simple 
English to say how to Herbalife distributors are paid. And what they can expect 
China earned specifically he wants to know about hasn't compensation levels 
there are. At Herbalife they call them 800 circled chairman's club millionaire 
team. And have other names like action so he's looking to to get to put their 
idea -- And also he's looking. 

Asking them specifically wouldn't say targets minority. Communities such as the 
Latino community. But the Asian community. Stand before we let you go. They'll 
-- -- of course long known for accusing his company being speak pyramids scheme 
shorting this stock are his fingers anywhere near this and and we also heard 
any. Word from the other side Carl Icahn and George Soros. That's a good 
question because mr. act when -- billionaire hedge fund manager did meet with 
Markey staffers. Last fall. But he did not -- the senator himself. This morning 
Aspen was unavailable to speak to last and Carl Icahn who I am his -- 
shareholder -- -- also was not available to speak with the -- Interesting okay 
story unfolding and the stock is plunging spam thanks so much for joining us 
from Boston -- -- All right -- -- -- at some hot stocks we have to talk about 
Netflix of course ops 16%. This was the biggest performer -- to thirteen on the 
S&P 500 continues to climb learning. Now with a 400 dollar share us stock price.
In 2.3 million new customers be wrong it's also saying that. Is going to dig in 
his heels when it -- student -- potentially being raised with that net 
neutrality case -- stay tuned for more on that. American Eagle down 10% today on
the heels of the abrupt announcement that its CEO. Robert Hanssen is leading 
after two years. Just two years was Levi -- for 23 years before that doesn't 
seem to be as successor in line at this company this is continuing. Struggling 
teen retail section of those three days Abercrombie also -- to -- its CEO but 
he's at least one shareholder -- rather. His stick around for a while anyway 
comp sales down 7% for the quarter. He's out stocks down today Logitech. 

Makes those Matt mice plural against the mouse for the computer once passionate 
-- long time but. Up 20% on the NASDAQ. Trades on the NASDAQ right its full year
forecast. Haven't those mice but it also has a lot more iPad. Keyboards and 
covers all the gadgets. Forward digital so it's things are looking pretty good 
over at Logitech. He's the tech and we're gonna move to mr. David Athens -- and 
here you know and you Lamar markets through here already digging Microsoft 
earnings come out. After the bell today let's talk about this because you think 
likeness hey man and Xbox now. Circus tablet worst in man -- but eventually so 
what's the big. How to potentially. Really gonna finally perhaps boost this 
company name recognition I mean. You know Microsoft that a little bit of a man 
-- you know a number of years now and had a good year last year at least in 
terms of its stock price in until last year it was one of those it seemed to. 
Perpetually trade between twenty and 33 dollars a share. And it throws off a lot
of dividends and a lot of you know share buybacks. And it's become one of these 
things that a lot of stocks. Seem to be you know formerly innovative company 
known as a growth company. But now is content to really just sort of buy back 
shares and make per share earnings look a lot better. IBM is the same way game 
and he certainly disappointed last last week but -- numbers but they beat 
estimates because of lower tax rate because I continue to buy back shares some 
of the of the well factor here -- still looking for a new C -- -- which is nice.
And you mentioned before about you know companies that are you know having 
trouble when there CEO just sort of announces that they're gonna lead out of 
nowhere. Now on the other flip side that whoever they do hire that's not going 
to produce and sort of 10% jump in the stock price -- you'd have to be a little 
silly to -- Just on the name of the CEOs you know going to run the company 
whoever she or he is you know but the other question is really sort of overtime 
what can -- do. And if you think about Microsoft is a company that sort of still
-- you know pretty established platforms it's got. You know a lot of money it 
makes from its ongoing sales well there's opportunity here to be seven this you 
know boring utilities -- It seems to have turned into. 

All right well we'll have to wait and see and take a look at that thank you for 
pre pre and we're gonna move on now after mr. Geffen were gonna wrap up things. 
Oh my goodness as a fund has almost wiped out on the wires here but I'm not 
going to. About gold because gold did rally -- thinking maybe gap and we're 
having a little comedy of wires here. Up to decide golden rallying today's 
buckle up 2%. Looks to be some short covering going on here at least in part in 
reaction to India. Potentially. Reviewing import restrictions overall gold ETF 
had a pretty. But 2013. -- -- to take a look today at market vectors gold miners
ETF which is up. 5%. The ATF has a market cap of one point three billion dollars
that in the press here training and follow us on Twitter. Reuters Insider and 
get Margaret videos Reuters dot com slash -- TV I'm Lisa Bernhard this is --