Tonight on CNBC’s Mad Money, Jim Cramer said he was ready to eat crow over Herbalife (HLF-NYSE) because it is a supplement company that he got wrong. It sells via Multi-level marketing and that uses 3rd party manufacturers. He thought it was bad, but now he says that this one deserves to trade higher rather than lower. The earnings were better and guidance in-line, plus they just got approval to market in 2 Chinese provinces. It has high margins and strong cash flow. They rejected a $38.00 bid from J.H.Whitney, so this should have a fairly clear floor. It also has a large buyback and a decent dividend. A new CEO cut down some of the distributors down.
This one traded up 2.4% to $40.34 in after-hours, after closing up 0.4% at $39.39 today. The 52-week trading range is $27.73 to $42.54.
Jon C. Ogg
May 15, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
