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  "documentTitle": "Herbalife, Ltd. (HLF)",
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  "authorName": "Pershing Square Capital Management",
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  "presentationDate": "2013-04-09 00:00:00",
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  "notes": "This is a research note from Pershing Square Capital Management regarding Herbalife.",
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      "kind": "callout",
      "text": "Answer: Herbalife bundles its products with a ‘business opportunity.’",
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      "text": "Herbalife's top-selling product, Formula 1, supposedly generated ~$1.8bn in “retail sales” in 2011, according to the company, roughly comparable to Oreo, Charmin, Crest, Gerber, Palmolive, Listerine and Clorox.",
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      "kind": "paragraph",
      "text": "Herbalife's advertising and R&D are immaterial. Herbalife's products are commodities that should have little to no pricing power.",
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      "text": "Formula 1 is expensive relative to comparable products. For a 200-calorie serving, Formula 1 costs nearly three times as much as Ensure or Slim-Fast, and nearly twice as much as Lean Shake.",
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      "text": "Formula 1 is a nutritional shake mix like Lean Shake, Slim-Fast or Ensure. Unlike these comparable products, Formula 1 is not sold in stores and lacks a “Ready-To-Drink” offering.",
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      "kind": "paragraph",
      "text": "Extravagant Promises. Herbalife Independent Distributor presentations market Herbalife as an opportunity to “be your own boss,” to “work from home,” to “achieve financial freedom,” to create perpetual income and to improve one’s lifestyle.",
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      "text": "What we’re doing at Herbalife, is we’re building the best business opportunity on the face of the earth. - CEO Michael Johnson",
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      "text": "Herbalife: The Business Opportunity",
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