Did This Stock's Grim Reaper Just Arrive?

The following video is part of our "Motley Fool Conversations" series, in which consumer-goods editor and analyst Austin Smith and industrials editor/analyst Brendan Byrnes discuss topics around the investing world.

In today's edition, Austin and Brendan talk about the monster drop that Herbalife recently experienced. Investors can be forgiven if they were shocked to see such a drop, because Herbalife actually had a great quarter. So what was the big bad news that sent shares spiraling? David Einhorn popped up on a conference call to pepper management with questions. Frankly, they seemed innocent enough, but if there was one question of suspect, it'd be the one about why management omitted certain vendor categorizations from its filings recently. Brendan and Austin talk about whether this makes sense, and the overreaction that an appearance like this has on related and unrelated tickers.

In you think Herbalife's financials smell a little fishy, there are other, better picks out there. Our chief investment officer's recommendation for "The Motley Fool's Top Stock for 2012." In just one. You can learn more about this stock that Wall-Street hasn't discovered yet by clicking here to download your free copy.

At the time this article was published Austin Smith and Brendan Byrnes have no positions in the stocks mentioned above. The Motley Fool owns shares of SodaStream.Motley Fool newsletter services recommendGreen Mountain Coffee Roasters and SodaStream. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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