Herbalife CEO: We'll Fix Any Wrongdoing
Cramer has been championing the nutritional supplement company Herbalife for months. The company reported “outstanding” earnings Tuesday – it beat estimates and issued a higher guidance. But the stock has been in a freefall all week. Why? Cramer called it a “trifecta of negativity.”
It started with allegations against the company for engaging in unethical business practices in China. The bad news snowballed when news came out the S.E.C. was investigating stock trades by a former “mid-level manager” at the company and got even worse when the regulatory body demanded information on the personal use of Herbalife products by the company’s distributors.
In a CNBC Exclusive, Herbalife CEO Michael Johnson told Cramer that if his company is doing anything wrong, it will get fixed. Herbalife operates transparently, Johnson said, and is fully cooperating with the S.E.C. and investigating any claims against its operations in China. “We are not a company to hide anything from anyone,” he said.
Cramer remained supportive of Johnson and the stock. He told viewers HLF is “not for the squeamish” and should only be bought after doing the homework on the company and the allegations against it.
Finally, Cramer had a chance to ask Johnson if he would consider buying back stock in the company.
Johnson’s reply: “The window opens tomorrow, that’s all I can say.”
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