Carl Icahn’s “Danger Ahead” Herbalife Hypocricy

9/30/15

As many people know, Carl Icahn released a video called “Danger Ahead” early on Tuesday laying out his reasons for thinking that the market is headed for trouble. Here’s some screenshots from his “public service announcement”:

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Icahn is, remember, one of Herbalife’s largest shareholders. According to him it’s a great company that helps out “Spanish people”. At least Carl has given up on trying to speak about the company publicly – he hasn’t spoken at length about Herbalife in a public setting in over a year.

Despite this, he continues to make active appearances on TV and converse about his positions in the energy sector and in other names. For some reason, however, Herbalife doesn’t seem to ever be in the prepared questions from journalists when Icahn is on – I wonder why this is.

Which brings us to the video Icahn released Tuesday. If you haven’t seen the video, you can watch it here. Basically, it’s a 15 minute warning wherein Icahn pushes forward his months old stance that the market is overvalued and that the high yield market is turning into a bubble due to low interest rates. I don’t necessarily disagree. 

The interesting thing is that almost every single “red flag” he raises can be applied to Herbalife.

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So, are you trying to tell us something, Carl?