D.A. Davidson analyst Timothy Ramey makes fun of Bill Ackman in his latest report titled “Multi-Level Marketers Industry Update.” Tim Ramey is the same guy who, a few months ago, downgraded Herbalife Ltd. (NYSE:HLF) from Buy to Neutral only to upgrade it three days later. Moreover, the D.A. Davidson analyst had slashed the price target from $78 to $38, and then started calling Herbalife Ltd. (NYSE:HLF) D.A. Davidson’s “single best idea for 2013.”

Bill Ackman

Bill Ackman missed forest for trees

In his latest report, Tim Ramey said that the latest gains in MLM stocks reflect the renewed investor confidence in MLM business model. Herbalife Ltd. (NYSE:HLF) is up 66 percent, and Nu Skin has surged 123 percent this year so far, compared to about 19 percent rise in S&P 500 Index.

Ramey attacked Ackman using Carl Icahn’s comments at the Delivering Alpha Conference last week. Mr. Icahn said during the conference that Pershing Square’s legal analysis of the nutritional supplement maker was a “pile of….” That’s the view of D.A. Davidson as well, said Tim Ramey. There have also been reports that Bill Ackman is secretly unwinding his short position in Herbalife Ltd. (NYSE:HLF). Ackman missed the forest for the trees, says Ramey.

Ramey emphasized Icahn’s sataric statements about Bill Ackman. Icahn praised (sic) Ackman, saying “I like Ackman. I’ll tell you why I like him. Anyone that makes me a quarter of a billion I like.”

D.A. Davidson estimates for Herbalife Q2 results

D.A. Davidson expects Herbalife Ltd. (NYSE:HLF) to post an operating income of $1.20 a share, up 9.7 percent from $1.10 in the second quarter of 2012. For the full year, D.A. Davidson expects $4.90 a share, well above the consensus estimate of $4.77 and the company’s own guidance of $4.60-$4.80.

Tim Ramey says the net sales of Herbalife Ltd. (NYSE:HLF) should rise 13 percent in Q2, helped by the expansion of daily consumption model. The analyst expects to hear an update about Herbalife Ltd. (NYSE:HLF)’s City-by-City initiative that would create long term customers.

As of June 28, 27.1 percent of Herbalife Ltd. (NYSE:HLF) shares remain short. That’s an increase of 3.2 percent from June 14 data. Ramey said Herbalife Ltd. (NYSE:HLF) is the most heavily shorted MLM stock Davidson follows. D.A. Davidson reiterates a Buy rating on the stock with $78 price target.

Herbalife Ltd. (NYSE:HLF) shares were up 3.72 percent to $61.60 at 10:36 AM EDT.