Published On: Wed, Nov 5th, 2014

Jim Cramer: Bill Ackman Is Having an Impact on Herbalife

The Friars Club Roast Of Matt Lauer

On CNBC’s Mad Dash segment, Jim Cramer described the power of one hedge fund manager to destroy a company. While Herbalife isn’t dead yet, Pershing Square Bill Ackman’s “non-stop 24 hour ‘Herbalife is a scam’ call” seems to have dealt the company a blow. Herbalife reported its second consecutive disappointing earnings, with a 4% decline in U.S. business and a 17% reduction in new members. Further analyst downgrades are expected, and regardless of whether Herbalife is really a scam or not, the stock is down for good reasons.

Michael Kors (KOR) beat earnings estimates, but reported a same store sales increase of 10% when Wall Street was looking for a rise in the high teens. What is hurting Kors is the lack of mall traffic, something Starbucks CEO Howard Schultz also warned about. Mall visits are declining in favor of ecommerce, and Cramer sees further declines for Michael Kors.

 

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