After this segment, you
can see Jim's
SUDDEN:DEATH picks
here >>
Jim's Comments BEFORE
the interview:
All right, what do you do
when you have a company
with excellent
fundamentals that has just
been dogged by too much
controversy? That's the
question I'm asking about
Herbalife Ltd. (HLF)...
We've liked this one-stop
shop, direct sales, weight
loss stock for a long
time. I first
recommended it on May 15th
- a year ago - when the
stock was at $39.39...
And, ever since, it's been
a complete rollercoaster.
This one traded up to $51,
before plummeting right
back to where it
started... $39...
Here's the conundrum...
HLF has been hit with
controversy after
controversy... You've got
this Fraud Discovery
Institute alleging that
their products have enough
lead in them, that they
should trigger a warning
for lead content... What
is it? Mattel toys?...
Back in April, their COO,
Greg Probert, resigned,
after it came out that
he'd been lying about
having an MBA... And then
you've got the Spanish
Ministry of Health citing
suspicious cases of
hepatic toxicity,
presumably associated with
consuming HLF's
products...
And, of course, there's
the endless stuff about
any company that sells by
multi-level marketing...
meaning salespeople who
sell to others, who are
meant to sell to others
still... You have those
that insist that it's
nothing more than a
pyramid scheme... that
only ends up with no more
clients, and crumbles
under its own weight...
These are the
controversies... Next to
them, we've got a company
that has over-delivered on
its promises made, even on
the show... every single
quarter. Back on May 1st,
HLF reported that it
crushed the Street's
estimates, by 13 cents...
Then it raised
earnings-per-share
guidance for the full
year, from $3.25-$3.30
range, to $3.52-$3.57...
one of the biggest beats
that we've had on Mad
Money...
That looks pretty fabulous
to me, but all these
negative allegations are
hanging over the stock...
maybe even hanging over
the product... keeping the
stock down.
Well, if you want purely
results, the stock would
be much higher...
But maybe this one has
just become too toxic for
us... Maybe, no matter how
well it does, it's better
to stay away... because of
all the non-earnings
related news that keeps
dogging it.
On the other hand, all
this negative buzz... it
could end up being
meaningless...
I don't know... That's why
I'm so happy to have
Michael Johnson, the CEO
of
Herbalife Ltd. (HLF),
back on the show... fourth
time, never ducks... to
help us figure out what's
really going on with this
company...
What do we do, Mr.
Johnson?... What do we
do?...
. . . .
.
Jim's Comments AFTER
the interview:
A tough road... Thank you
for coming out and
talking. Most CEOs would
duck this and wouldn't
come forward (to touch
this) with a 10-foot
pole... Thank you very
much.
. . . .
.
■
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Second Segment
Final Segment
2 Title:
'Mad Mail'...
. . . .
.
Featured
Stock(s):
See comments below...
After this segment, you
can see Jim's
Sudden:Death picks
here...
. . . .
.
■
Stock Snapshots - Includes
all stocks mentioned above
■
Jim
Cramer's
rating on
this stock
STOCK
SYMBOL
Closing
price
that
day
Opening
price
next
day
Full Company
Name/Comments
(see comments above for
each)
Q:
The NYX*
reported what
seemed to be a
good quarter and
it has not
really reacted.
It seems to be
dead in the
water again.
What will it
take for this
stock to finally
get some
positive
recognition and
rally?
JJC:
It is easier for
me to get into
Iron Man 2 (the
recently-released
movie, in which
Jim made a cameo
appearance) than
it is to keep
NYX* over $70. I
was amazed... I
own it for my
charitable
trust... I sold
some on the way
up... I was very
tempted to buy
some back...
but, I have to
tell you... I
have to wait
until a lower
level because,
even though this
company reported
a great quarter,
it has no
sponsorship
whatsoever (no
positive analyst
coverage), and
the buyback
never seems to
work. And we had
Duncan
Niederauer (CEO)
on the show, and
I like Duncan
very much...
It's a bad
buyback and no
one believes the
earnings...
Perhaps what has
to happen is, it
has to go down
to the low $60s,
and I know that
I'd pull the
trigger again on
it. Why? Because
there's innate
value, and it's
a fast grower. I
can't give up on
this. It's too
good a story...
Q:
I
recently
purchased an
HDTV and had to
spend over $400
to purchase a
new HD satellite
dish and
receiver. Then I
purchased a
second HDTV and
had to purchase
another HD
receiver for
$300... Yikes!
How can I make
money on this
trend to upgrade
to HD viewing?
JJC:
I've been
playing this
myself for
charity... for
the trust... with
Corning Inc. (GLW*).
GLW* has had a
monster move
just off this
from $20 to $27.
It's pulling
back now. It's
cheap. It's your
HD play.
[
end of final segment ]
Go to the SUDDEN:DEATH
SEGMENT from
tonight's showhere >>
See current quotes on Yahoo!
Finance from
tonight's show stocks
here >>
Symbol keys:
A Charitable Trust stock.
- An asterisk next to a
stock symbol indicates that
Jim mentioned it is a stock
that he manages within
his
charitable trust portfolio.
You can see the complete
portfolio
of stocks
here >>
Thumbs up - indicates
he would buy the stock or,
at the very least, not sell
the stock. We do our
best to interpret Jim's
opinion on stocks, as we
think it is indicated by his
comments during the show.
Please read his comments to
decide for yourself.
Thumbs down -
indicates he has said not to
buy or to sell the stock,
based on his comments
We do our best to interpret
Jim's opinion on stocks, as
we think it is indicated by
his comments during the
show. Please read his
comments to decide for
yourself.
Back up the truck -
indicated by Jim, when he
says the stock is so good,
that he would do a
'mon-back' on the stock...
In other words, this is the
sound someone would say to a
truck driver, "Come on
back... " as he is "backing
up the truck" to load up on
his cargo. Translation
for buying stocks:
This recommendation by Jim
indicates that, after you do
your own
homework on the stock,
you should feel comfortable
loading up on it, as it is
in a good position to be
bought at this point.
Stumped. - Of the
2,000+ stocks that Jim
Cramer has in his head, for
which he has an informed
opinion, he sometimes comes
across a caller with a stock
he does not know well enough
to opine on... He then
indicates he is stumped and
will have to come back to
it, after he does some
homework of his own on
the stock. This
usually occurs during the
Lightning Round, when Jim
does not know in advance who
is calling, or what their
stock question is about.
Definitions of key phrases
used by Jim, known as
"Cramerisms":
Definition: 'Pull the
trigger' is Jim's phrase for making
the decision at that point to trade -
either to 'buy' or
to 'sell' (although he
usually uses the phrase for
buying), as if to say you
should feel comfortable
enough to make the final
decision without looking
back...
Definition: 'Ring
the Register' is Jim's phrase for
selling a stock, and making
it a final sale, that you
should not look back on.
Put it behind you.
Definition:'Let It Come In' indicates how you
may wait for it to pull back, or have the
stock price come down briefly, as your
chance (after letting it come in) to buy
the rest of your position (i.e., total
number of shares you own in that stock).
Definition:'backing it up'
or 'doing a 'mon-back' is Jim's
phrase for the metaphor of backing up a
truck to load up on a stock by buying
it. 'Mon-back is short for the
imaginary worker saying, 'Come on
back...' as the truck is backing up to
receive its load... Notice that we use
the little truck icon to indicate where
Jim has mentioned this.
Translation for buying
stocks: This
recommendation by Jim
indicates that, after you do
your own
homework on the stock,
you should feel comfortable
loading up on it, as it is
in a good position to be
bought at this point.
See more
"Cramerisms" & other
financial phrases
here >>
Helpful Websites:
See the stocks currently
known to be in Jim Cramer's
Charitable Trust at:
Stock Homework 101:
This is an excellent
upcoming site that provides
resources and links to help
you do that homework that
Jim Cramer recommends after
hearing his suggestions...
FastMoneyRecap:
This site will be a quick
summary of recommendations
made by the great Fast Money
TV show crew, that will
offer you a unique service,
to compare their picks to
Jim Cramer's past comments
about those stocks.
