Preserving Profits With Tupperware
Tupperware could be the ultimate slowdown stock, Cramer told viewers today.
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."
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