Herbalife revelations ‘just noise’: Pro
The revelation that Herbalife is receiving new scrutiny over quality-control issues doesn't change much about the company, Stephen Weiss of Short Hills Capital said Tuesday.
"I'd put this in the 'interesting but who cares?' category," he said. "We see this with consumer goods. Every day you see recalls with cars. It just doesn't matter unless they show there's a continued pattern of abuse and safety issues. They'll get fined and then move on."
A former Herbalife employee raised questions about a potential safety problem at one of the company's plant in 2011, allegations that the New York attorney general's office is now looking into, according to a New York Times report.
(Watch video: Herbalife safety issue with drink mix draws scrutiny)
On CNBC's "Fast Money," Weiss didn't think the story had legs.
"This is noise," he said. "This is just noise."
Josh Brown of Fusion Analytics also downplayed the news.
"This is a hedge fund with a short position bankrolling the legal campaign of a whistle-blower who left the company," he said.
Herbalife has been the subject of a battle between activist investor Bill Ackman of Pershing Square, who announced a $1 billion short position earlier this year, and the likes of billionaires Carl Icahn and George Soros who have, along with other marquee names, taken the long positions.
(Read more: Herbalife's a $300 stock: Robert Chapman)
"As we've been discussing it, somebody in a Wal-Mart somewhere slipped and fell. An employee at McDonald's somewhere picked something up off the floor and served it," he said. "This is reality, you know, with a food-service company, especially."
TheStreet CIO Stephanie Link noted Herbalife's stock action.
"It has a cloud around and yet the stock is only $3 off its high, and that speaks to the underlying fundamentals that have actually improved," she said, adding that investors who were bullish could remain so.
"Well, they should, with double-digit earnings growth and margin expansion that's in double-digits."
Trader disclosure: On Aug. 13, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Josh Brown is long VGX; Stephen Weiss is short AAMRQ; Stephen Weiss is long M; Stephen Weiss is short JCP; Stephanie Link is long AAPL; Stephanie Link is long JPM; Stephanie Link is long WFC; Stephanie Link is long CSCO; Stephanie Link is long FB; Stephanie Link is long EBAY; Stephanie Link is long YUM; Michael Murphy is long BAC; Michael Murphy is long C; Michael Murphy is long MSFT; Michael Murphy is long LEN; Michael Murphy is long TOL; Michael Harris is short CME Gold futures ; Michael Harris is short CME 10-Year Treasury Futures.