In my opinion, Cramer probably hyped HLF so his short buddies could short it at the highest price possible. Sad to think he, supposedly the common man's investment advisor, is really just setting up some of his followers so his short buddies could take advantage of them.
Herb and Cramer teamed up with the shorts against Pre Paid Legal Services, another MLM. Don't think these two don't talk about Herbalife. There's no way that Cramer just heard this.
PROBLEM: On the lightning round Cramer tried to act like he just found out about the problem with Minkow and that's why he soured on Herbalife
1) Here is a link to an 5/8/12 article by Herb and a CNBC video dated 5/2/12 @ 2:35pm EST (Almost the entire segment is about Minkow)
Excerpt from article: "Last week I asked Herbalife why it had paid convicted felon (and former Herbalife critic) Barry Minkow $300,000 to shut up.
Minkow, who served seven years in prison for being the mastermind behind the ZZZZ Best fraud, is now serving five years in prison for conspiring to manipulate Lennar, another company he had targeted)."
2) REAL PROBLEM: So after Herb has published and discussed Herbalife's problem with Minkow several differnt times-> CEO Michael Johnson goes on CNBC with Cramer supposedly on his side and Herb as the reporter critical of Herbalife. So at the beginning of the interview, does Cramer really expect us to believe he knew nothing about Herbs allegations relating Minkow. Below is a link to that interview and I don't see any real surprise on Cramer's face (yes he is critical of how HLF handled the matter which makes me feel even more strongly that he had to already know about Minkow in advanced to jump on it like he did) Note: Minkow is discussed around 8:45 of the video-
So after the above interview where Cramer was supposed to be a supporter of Herbalife, Cramer answers a viewer about Herbalife and goes into a denial about knowledge of Minkow before outing Herbalife's stock-
NOTE: Watch video @ 2:55 Excerpt: "I didn't know that-> I found out later that"
Talk about dancing to change a position
ANSWER: YES Herb and Cramer are a tag team so don't trust either one of them
Minkow is a convicted criminal who is back in prison for spreading misinformation for profit through short selling. HLF have told the press before that they settled with him to avoid the time, expense and distraction of protracted litigation. It makes a lot of sense to me.
That is so funny!! I had to laugh when Cramer said he just found out about the convicted felon. My husband and I were watching and we couldn't believe he could blatently lie like that on television and that he would think we were stupid enough to believe him. THis from a guy who could tell you the p/e ratio of any company on any given day. Yea right!!!
Apparently TheStreet.com didn't get the memo from Cramer-> it still rates Herbalife a BUY-
TheStreet Ratings rates Herbalife as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins
It's funny, but i thought of this exact fact also. If they suddenly change their tune, you know you can no longer trust TheStreet. After all, nothing has fundamentally changed with the company.
It has always been the motivating factor of talking heads to manipulate stocks in a manner that will benefit themselves and their buddies.
This is common knowledge. Learn how to work it as they work it.