Mad Money

Herbalife Blooms Again

Cramer: Construction Criticism?

The last time Herbalife Chairman and CEO Michael Johnson was on Mad Money, the company was stuck in a “trifecta of negativity,” as Cramer called it. But if Tuesday’s earnings report was any indication, those days are over.

Herbalife reported a 29% fourth-quarter profit jump thanks to strong growth in the U.S., Italy, Taiwan and China, a whopping 146% in the Asian giant. Appearing again today on Mad Money, Johnson attributed the success to a “highly motivated” sales force that’s “confident in our product.”

All this positivity came despite a lagging U.S. economy, leading Cramer to the anecdotal conclusion that Herbalife and other direct-sales-based companies like Avon and Tupperware are better suited for downturns. But Johnson said there’s no empirical evidence to prove the claim. His firm’s just in a “continual business-building process,” and the work’s paying off.

In the very least, he’s turned Cramer into a believer. Watch the video to find out why.

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