Friday, December 28, 2012

Corrected--Pershing Square's Ackman About to Find Out How Expensive Google Ads Can Be (HLF)

Correction:  inadvertently put Hormel's symbol in the title line.
You can tell how much I've been paying attention.
Original post:

From Street Insider:
Not only is Bill Ackman's Pershing Square Capital hedge fund going after Herbalife's stock, now he is going after the company's actual business.

Taking his attack on Herbalife to the next level, Ackman is now buying Google ads for keywords including 'Herbalife'.

The ads link to Ackman's website, where he discusses his short thesis on the stock.

The ads could be troubling for the company as new potential distributors - the company's lifeblood - may now be diverted to Ackman's website and opt-out of a business relationship with the company.
HT: Clusterstock who handily point out that Pershing Square will be paying for every click on the ad.
Click farm
...Competitors of advertisers: These parties may wish to harm a competitor who advertises in the same market by clicking on their ads. The perpetrators do not profit directly but force the advertiser to pay for irrelevant clicks, thus weakening or eliminating a source of competition. ...