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Text Size
Mar.14
7:04 PM ET
Friday, 14 Mar 2008
Recession-Proof Stocks

Not every company struggles during a recession. In fact, direct sellers like Avon tend to do quite well. As cost cutting forces employees out of traditional jobs, the company’s door-to-door sales force swells in number.

Not to mention, direct sellers enjoy high gross margins, low capital intensity and lots of free cash flow. And there’s plenty of room for growth here, as Avon [AVP  Loading...      ()   ], and peers like Herbalife [HLF  Loading...      ()   ] and Tupperware [TUP  Loading...      ()   ], expand overseas. The weak dollar benefits all three companies, Cramer said, in markets with no real competitors.

So who’s the best in the group? Cramer said he leans toward Tupperware. The stock’s up 6% since Jan. 30 despite this difficult market, which might be no surprise considering 85% of TUP’s business is international. Even still, Tupperware’s pulled back 10%, leaving investors a great opportunity to buy in.

Watch the video for Cramer's call on Avon and Herbalife.

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