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Preserving Profits With Tupperware

Wednesday, 30 Jan 2008 | 6:51 PM ET

Tupperware could be the ultimate slowdown stock, Cramer told viewers today.

Spotlight on Tupperware
Tupperware has been a star performer, and Rick Goings, CEO of Tupperware, tells Mad Money's Jim Cramer what his company is doing right.

Despite a tough seven months for U.S. economy, Tupperware blew away estimates when it reported Wednesday thanks to strong overseas exposure and a business model that thrives on recession-fueled unemployment.

Job losses just mean there are more potential recruits for Tupperware's sales force, CEO Rick Goings pointed out to Cramer during an on-set interview. Not to mention, the company's "go-to business" brings Tupperware's "differentiated product" to customers rather than waiting for them to visit a store.

Raw costs aren't hurting Tupperware either. Even though oil has doubled in price since Cramer recommended the stock in October 2006, and the company's products are resin-based, cost expenditures have dropped, Goings said.

The CEO plans to use Tupperware's cash to pay down debt first, and then consider a special dividend or share buyback to reward shareholders.

"We take apart guys who lose us money. We have to celebrate the winners," Cramer said. "And [Tupperware is] one of the winners."

Questions for Cramer? madmoney@cnbc.com

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