Kevin Thompson (MLM attorney) records a brief video from New Orleans announcing he was recently interviewed by CNBC about the multi-level marketing (MLM) industry, prompted by events around Herbalife. He summarizes a May 1 earnings-call exchange involving David Einhorn that he says coincided with a ~25% two-day drop in Herbalife shares, and notes a later CNBC appearance by Einhorn where a refusal to say if he was short coincided with a ~$5-per-share drop. Thompson expects Einhorn to disclose any positions in September and says the CNBC segment is scheduled to air around September.
Questions this video answers
May 1st.
Approximately 25% over two days.
About $5 per share in one day.
In September.
Around September (about six weeks from the video date).
Chapters
Hi, everyone. Kevin thompson here from the mlm, attorney, and I'm on location here in new orleans. My partner and I, walt burton, we're here to interview jabari greer. Jabari is a defensive back for the new orleans saints. He's also a former teammate of mine. But while I'm here, I thought maybe I could give you some insights as far as what's happening in the industry. I was interviewed at cnbc last week right outside new york city. And what an amazing experience. And I don't want to go into the details as far as what the interview was about. Because I want to give cnbc an opportunity to put their program together. But essentially, what's happening here, or what prompted the cnbc story. Is all of these events with herbalife. So, a little bit of a recap. In May, I think. May 1st, David Einhorn was on an earnings call with herbalife. And he asked a few questions. Particularly, he asked how much revenue comes from external customers. And herbalife CEO said, basically, we don't really know, and it's not really important. Just by having einhorn on the call, Herbalife stock dropped 25% in a two day period. People assumed that einhorn was taking a short position on herbalife. Here we are, two months later, we still don't know if einhorn is short on herbalife. Einhorn was on cnbc, I think a week ago, maybe two weeks ago. And he was asked, hey, are you short on herbalife? And he said, he's not going to answer the question. So it was a non answer. Just by that non answer alone, Herbalife dropped $5 per share in that one day. So this guy is a market mover. He's looking at herbalife. We don't know what he's going to do. If he's short on herbalife. I think we'll know in september. He has to disclose his positions in september. The cnbc story, which is exploring herbalife's business. It's also exploring the legalities of the mlm industry in general, which is why I was asked to be on the. That story is set to air in september as well. So be on the lookout for that. That's probably six weeks from now. We'll see what happens. But I wanted to give you a heads up. It's pretty interesting stuff. So, that being said, I hope you have a wonderful day. Kevin thompson, over and out.
