Betting on Zero Page #7

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And if we're just there,

just, you know,

slinging a bunch of shakes,

And yes, having a lot

of fun in doing that.

But the thing is,

is that we're there

To duplicate,

to grow our checks.

Kirby:
What kind of sold

me on the idea was,

I think, 40 nutrition clubs

That opened over

the course of two years

Down in

the southern part of oklahoma.

So, generally when you see

an industry

That's throwing up

brick and mortar storefronts

At that rapid of a pace,

There's some money being made.

I had student loan debt

And I didn't have

a savings account

for sure and, uh...

The only thing I did have was,

I have a '73 mach 1 mustang

That I restored all

through high school.

I actually used it

as collateral

To get a $15,000 loan

to actually open

a nutrition club.

The way herbalife

is structured, it sets

Small goals and macro goals

for the distributor.

The small goals

would be obtainable

and it keeps him going,

It keeps him in it.

They start him out

at a 25% discount.

Then later bump him up to a 35

And then soon on to a 42

and then a 50% discount.

So, I mean, those are little

stepping stone incentives

To keep people in the company.

And that,

for the average person

Will take six months to a year

Just to have finally achieved

that 50% discount.

I bought in and went straight

to the 50% marker

And opened a nutrition club.

Announcer:
At herbalife,

your success is our business.

That's why we've developed

a training program

That can teach you everything

you need to know

To grow a successful business.

Kirby:
Dan waldron,

he's been with the company

Almost since the beginning.

I had dinner with dan

And that really

legitimized it,

the fact that I'm meeting

This individual who's been

in the company

for nearly 30 years.

He's got this huge mansion.

$80,000 cars in the driveway,

you know.

And he's sitting there

telling me over dinner that

"you guys have got it

so much easier than I had it

"because you can

open a nutrition club

"and they'll just

come to you."

So, hook, line and sinker,

the next three months,

We were just all about opening

nutrition clubs because

The dude at the top told me

this is where the money's at.

I achieved

a level in the company,

they called the g.E.T. Team.

Global expansion team

is what it stands for.

You go from

supervisor to world team

to g.E.T. Team.

You're halfway up the ladder.

You're halfway

to the top already

And I achieved that

in six months.

That seemed

like a great start.

The only thing

that separates you

From not getting

on the president's team

Is one thing. Write this down.

Giving up.

Cohan:
Herbalife

just didn't sit there and say,

"oh, bill ackman's right.

"we're just gonna

pull the plug

"on this operation."

You know, they fought back.

They built their

case in the media

And with their investors.

This is a war,

And for any of us to think

otherwise in here

would be foolish.

'cause name another company

this has ever happened to.

This is unique in

the american

business landscape.

Female reporter:

Your stock price

has taken a hit.

What do you say to

your shareholders?

How they should rally

to ride out this storm.

We're highly profitable,

Um, we're gonna continue

to be highly profitable.

And that stock price

will reflect the value

That's truly in this company.

Richard:

This company has built up

Such a protective armor.

They have the best law firms,

they have the best pr firms.

They hire all these

major sports figures

To promote the brand.

Now the best pyramid schemes

try to recruit credible people

Uh, to give them,

you know, credibility.

We've got richard carmona.

He was the surgeon general

of the United States.

He happens to be hispanic

And this is a person

of very high integrity.

He's on

the board of herbalife.

And then they have

this nobel laureate

To create credibility

around the products.

I believe dr. Ignarro

Is the wealthiest

nobel laureate. Why?

Herbalife has paid

him $21.2 million

For serving as the company's

spokesperson.

And for money...

Well, take a look.

And I like the idea

of an american product

Being helpful to people

in other parts of the world.

And so,

It has every combination

of things that I like.

I mean, the hardest part,

I have to tell you,

michael, is

We all diet and other

people are starving.

And you actually

have a product

that deals with both.

It's kind of amazing.

It's kind of amazing.

I do think it's amazing.

and no sticking

your hands out the windows.

You understand me?

I was raised

to be loud and proud

by my parents.

I do remember my mom

is part italian

And no one talked about that

Because they were such

a strong mexican family.

sometimes I could be wrong,

The mannerism in

which I conduct myself,

But it's out of passion.

herbalife has

come into our community

Like a thief in the night.

Stealing from our people.

We say,

"afuera with herbalife!"

Herbalife!

These people are

going to their gala

And, with no shame,

knowing that

On the other side of

the building are people

Who have received

financial harm from them.

They were preyed upon.

Herbalife!

Herbalife!

Herbalife!

You guys go and

enjoy the extravaganza.

But what are they saying?

Excuse me, could you guys

get on the sidewalk, please?

Thank you.

Contreras:

in 2002, my life changed.

There was this young man,

That was shooting people

in the neighborhood.

We understand he was part of

an aryan nation gang.

I was shot in

the back of my head.

When I was

losing consciousness

All I could think about was

my son and my daughter.

I think that's

when I was really born

Because before

I used to worry about

My house, my bank account,

that was my priorities.

And in an instant,

your life can be taken away.

Maybe that's why

I'm so sensitive

to victims of whatever.

Herbalife or whatever.

We need to be

understanding to them.

Yeah, we're gonna do that.

Um...

Yeah, I have returned.

-Are you hearing?

-Yeah.

Okay. I can see the return...

Not the most comfortable

chair in the world.

The return is behind bill.

What's new?

We saw this idea from you

late last December.

Since then we saw

the stock double.

You need the government

to get involved. They haven't.

What aren't they listening to?

Tell me.

The stock is up from

where we shorted it.

We shorted it in

the mid to high 40s.

So we've certainly lost

money mark to market

But what we focus on...

-How much?

-You know, a lot of money.

Four, five hundred

million dollars.

Something like that.

Uh, but what we focus

on with herbalife

Is telling a story

with regulators.

Making sure that

they understand

What the issues are,

And getting regulators

interested in the company.

But the fact that

you've been so outspoken

And we haven't seen

anything happen yet,

Could one make the argument

You might be

helping the company?

Okay. People can make

whatever arguments they want.

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