Herbalife Seems Undervalued - trackseekingalpha

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Herbalife Seems Undervalued
May 01, 2009 07:36 AM UTC

trackseekingalpha

Return	Risk
-13.40%	HIGH

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Symbol	Sentiment	Start	Return	Closed
HLF	n/a

Via Long Investment Ideas from Seeking Alpha:

Herbalife (HLF) seems to me a good stock in a promising industry. The Margin of Safety (MoS) for this stock is not as big as for some other stocks, but I think there is some. A thorough look at the statements is definitely needed for this stock. I think this stock could be a nice addition for every portfolio.

Let's first look at valuation. I believe that the Margin of Safety is low is because of the book value. The firm has a high p/b ratio (4.85) and no tangible book value. A moderate price to tangible book value would give this stock a lot more safety.

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