Jim Cramer, of CNBC’s MAD MONEY, celebrated the Third Anniversary of his show, last week with an in-depth look at stocks, especially stock to choose during what many expect to be the worst recession since the end of World War II. Cramer chose three stocks from the Direct Selling World, Avon (AVP), Herbalife (HLF), Tupperware (TUP), as some of his favorites.
Cramer explained that during a recession companies like those, and other involved in the direct sales world generally tend to do better. The reason? During recession when many companies downsize, people who are out of work, or who have taken a pay-cut, are looking for other means of income. These 3 companies have global exposure and are the most well known.
When people are choosing a second source of income, the 3 companies Cramer suggested, immediately come to mind due to their longevity, good reputation and availability worldwide. These companies and others like them generally profit from a weak dollar.
Cramer is especially fond of Tupperware because 85% of its sales come from overseas and the stock has gone up 6% since January. Cramer thinks this is a good buy because the stock has recently pulled back a bit, giving people a good entry point to purchase the stock. Cramer also likes Herbalife, the nutricutical company, whose stock has gone up $10 a share since November, but he warns against purchasing now and instead recommends waiting for a dip in the stock. Avon is also a good buy because like Tupperware a large portion of its sales come from overseas. 75% of Avon’s Sales come from international sales and the company will soon be expanding into Brazil and China.
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