| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers T > Headlines for Teva Pharmaceutical Industries Ltd. > News item |
Morning Commentary: Herbalife lower on overstated new member metric; market remains better-bid
By Rebecca Melvin
New York, March 3 – Herbalife Ltd.’s convertibles changed hands about 2 points lower in the early going on Thursday – although the bond was not trading actively – as shares of the Cayman islands-based weight management and nutrition company fell after it said that it had overstated growth of active new members in its last three conference calls.
Convertibles overall were said to continue to be better bid, with Intel Corp., Ctrip.com International Ltd. and Teva Pharmaceutical Industries Ltd. all trading better with little theme other than that tone has improved.
“This rally does have legs,” a New York-based trader said.
Meanwhile, Herbalife’s 2% convertibles due 2019 traded last at 90.5, which was down from about 92.375 previously, according to Trace data. Herbalife shares were last down $4.34, or 7.7%, to $52.04.
Herbalife corrected its active new member metric provided in previous 2015 earnings calls but said that the errors do not impact the company’s financial statements in any way.
The company said the errors were caused by “database scripting errors,” that led to both errant inclusion of additional categories of data not included in 2014 or prior period calculations and quarterly aggregation issues which created variances from period-to-period depending on when the greatest level of activity occurred during the period.
Herbalife corrected each instance of misstated membership levels. For example, active new members were up only 0.8% in the third quarter of 2015 compared to the third quarter of 2014, not up 33% in that period as the company initially reported.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.