{ "docId": "019dd923-622c-750b-8b9b-c1ba6b225076", "docSlug": "03a523e87675", "documentTitle": "Multiple (portfolio-level LP update: MDLZ, APD, ZTS, QSR, CP, HHC, VRX, PAH, NOMD, HLF short)", "authorId": "01_Pershing_Square", "authorName": "Pershing Square", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2016-04-26 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 63, "pageCount": 82, "prevPage": 62, "nextPage": 64, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 1, "notes": "Uses a combination of direct quotes, financial data, and regulatory/political pressure to build the case.", "elementsJson": [ "headline_text", "callout_box", "bullet_list", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9b-c1ba6b225076/63", "deckHref": "/decks/019dd923-622c-750b-8b9b-c1ba6b225076", "deckJsonHref": "/decks/019dd923-622c-750b-8b9b-c1ba6b225076.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9b-c1ba6b225076#slide-63", "components": [ { "bbox": { "h": 0.06, "w": 0.92, "x": 0.04, "y": 0.17 }, "kind": "callout", "text": "All facts continue to confirm that Herbalife is a pyramid scheme", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "06a421d8-916f-43d2-b1a1-22d49fc9754b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.35, "x": 0.04, "y": 0.46 }, "kind": "list", "text": "Still No Proof of Retail Sales", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5d08f338-4a48-4866-85bb-f265fda80e4e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.92, "x": 0.04, "y": 0.25 }, "kind": "list", "text": "Recently disclosed HLF video emphasizes recruiting and undermines the existence of retail sales", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e4831b16-0efb-41a7-8c20-202171045915", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.75, "x": 0.04, "y": 0.6 }, "kind": "list", "text": "State action by New York Senator Jeff Klein ramps up pressure on Herbalife", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f5bfd9b4-c361-42d3-97a5-a72b0b7a1347", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.88, "x": 0.08, "y": 0.32 }, "kind": "paragraph", "text": "CEO Michael Johnson: \"It's the recruiting, meaning bringing new distributors into our company, which is the most vital part of our bloodstream. We bring new distributors in – we grow. It's that simple. And the company has built its whole reputation, its whole life, on recruiting.\"", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "17befb1f-75d8-4f58-ab2d-cc6a3cc36f8d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.88, "x": 0.08, "y": 0.65 }, "kind": "paragraph", "text": "New York State Senator Jeff Klein, in conjunction with Public Advocate Letitia James and not-for-profit Make The Road New York, released a highly critical report on Herbalife which concludes that Herbalife distributors are \"running an illegal pyramid scheme\" and proposes New York State legislation that would amend the New York State General Business Law", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "484da60d-027a-416a-8e18-4818ca624734", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.88, "x": 0.08, "y": 0.51 }, "kind": "paragraph", "text": "Through 12/31/15, HLF had spent ~$109 million defending itself, but still refuses to collect retail sales information", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f43197ce-6208-4796-ac29-34560f4b22a7", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "It’s the recruiting, meaning bringing new distributors into our company, which is the most vital part of our bloodstream. We bring new distributors in – we grow. It’s that simple. It’s that simple. And the company has built its whole reputation, its whole life, on recruiting. — CEO Michael Johnson", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-64d1-73a9-abc6-e93c1e242e1c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.8, "x": 0.04, "y": 0.85 }, "kind": "source-note", "text": "Sources: Herbalife financial statements. 1: We believe this clip was taken from a longer video from Herbalife's 2005 global management retreat, previously reported on by the press. 2: The report, titled \"The American Scheme: Herbalife's Pyramid 'Shake' down\" is available on Sen. Klein's website.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "211fb0ed-fc7b-4eb2-9ec5-d63f19c9332d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.55, "x": 0.04, "y": 0.08 }, "kind": "title", "text": "Herbalife: It's a Pyramid Scheme", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b19f9f01-d2b3-46d6-9902-c6bdabbaca91", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "antagonist-introduction", "slug": null, "matchId": "53682e61-0395-476d-8391-4cb6160f45d9", "evidence": "The slide explicitly frames Herbalife as a 'pyramid scheme' and uses quotes and reports to attack its business model.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }