HLF -5.1%

Herbalife Ltd. (HLF) dropped 5.1% on November 2, 2012 (S&P - 0.9%). Although no company-specific event contributed to the decline, investors may have interpreted Monday's +3% earnings surprise as a sign of weakness - HLF has beat the mean consensus EPS estimate by 14.3% on average over the previous 4 quarters. Despite this dip, we continue to believe that the growth of daily consumption distribution and will drive net sales, and infrastructure investment associated with the company's 'Seed to Feed' initiative will grow margins moving forward.