Jim:
This is "Invest In
America"... a look
at this nation's
most iconic
companies... the
ones that should
poised to take
advantage of the
downturn...
On this show, we've
always liked
Tupperware
(TUP)
as a recession play,
because it's a
direct seller, and
more people are
willing to become
Tupperware sales
rep.s to supplement
their income, by
selling its products
when times are
tough...
We also thought this
company would do
better with cheaper
oil, as its products
are made out of
plastic, which is
ultimately derived
from petroleum...
The last time I
brought on TUP's
CEO, Rick Goings, on
July 24th, the stock
was at $38.73. It
had just reported a
fantastic second
quarter, and
delivered guidance
that was a tad below
the Street's
consensus.
I said I liked the
stock then, in part
because we saw the
resin costs going
lower... the big raw
materials...
See all
of
tonight's
stocks
mentioned
on
Yahoo!
Finance,
here...
Thursday,
November 6, 2008
(Cont'd from
above)...
Well, since then,
the stock's fallen
from $38.73 to
$22.40... Not a
stock split... I
need to eat plenty
of crow... of course
on a Tupperware
plate.
What's going
wrong?... TUP
reported another
better-than-expected
quarter on October
22nd, beating the
Street's estimate by
6 cents... but,
again the company
gave
lower-than-expected
guidance, which is
the kiss of death in
this market...
Right now,
Tupperware
(TUP)
yields almost 4%...
another accidental
high yielder...
because the stock's
come down so much,
the dividend looks
big... and I think
it could work at
these levels...
But, you can't trust
me... obviously... I
liked it higher.
But, before I give
it the thumbs up, I
want to talk to CEO,
Rick Goings, about
what's happening
with the business.
Mr. Goings, welcome
back to Mad Money...
The Bottom Line!:
As this stock goes
down, it gets
cheaper. Now that's
not what we teach on
Wall Street,
obviously... or else
we wouldn't be
downgrading all
these stocks as
they're low... But,
as your stock goes
down, the dividend
produces a higher
yield, which is why
I am going to
continue to
recommend your stock
on the show, even
though obviously, I
was wrong at $38. I
don't think I'm
wrong down here.
