Levick Weekly - January 11, 2013: Bank Of America Is At The Crossroads (Again)


In This Issue:

- Herbalife Speaks For Itself As Ackman And Loeb Duke It Out

- Lance Armstrong: Coming Clean Won’t Be Enough

- Bank Of America Is At The Crossroads (Again)

- White Collar Enforcement In 2013

- What's Next: Food Labeling Issues In 2013

- Blogs Worth Following

- Levick In The News

- Excerpt from Herbalife Speaks For Itself As Ackman And Loeb Duke It Out:

It's a clash of Wall Street titans unlike any we've seen. On one side is hedge fund manager William Ackman, who contends that global nutrition company Herbalife (HLF) is "the best-managed pyramid scheme in the history of the world." Last month, he publicly disclosed his views and a $1 billion bet — in the form of a short sale of more than 20 million shares — on the company's impending demise. If he turns out to be right, the gambit could be just what he needs to revive a reputation damaged in recent years by questionable gambles on Target (TGT), J.C. Penney (JCP), and the Hong Kong dollar.

On the other side is his good friend and investing equal Daniel Loeb, who calls Mr. Ackman's allegations "preposterous." He sees promise in Herbalife's "compounding" sales model, and disclosed on Wednesday the acquisition of more than 8 percent of the company. Whether he sees a long-term or quick-hit opportunity remains to be seen. But regardless of his intentions, Mr. Loeb has done a great deal to at least cast aspersions on Mr. Ackman's claims that the company is teetering on the edge of disaster.

Please see full newsletter below for more information.

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Topics:  Acquisitions, Bank of America, Blogs, Doping, Enforcement, Food Labeling, Herballife, Lance Armstrong, Performance Enhancing Drugs, Proposition 37, Short Sales

Published In: Administrative Agency Updates, Communications & Media Updates, Finance & Banking Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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