Cramer's 'Mad Money' Recap: Fight the Panic

Herbalife CEO Defends Company

Herbalife (HLF Quote) reported a quarter that dreams are made of yesterday, but the stock is down on news that the company has been accused of conducting unethical business practices in China, Cramer said.

Also, the Securities and Exchange Commission is investigating the timing of securities trades made by a former employee.

However, in a TV interview with Cramer, CEO Michael Johnson said his company is confident that its business dealings in China have been OK. And if what they're doing is wrong, Johnson said they would fix it. "We're operating transparently," he said. "If the SEC is here nosing around, we're going to let people know about it."

Overseas, Johnson said, the company's nutrition club model has been "powerful." In Mexico and in the U.S., Herbalife is continuing to do well and in China, the company is growing through its direct sales model, he said.

Cramer said he doesn't believe the negative news is significant. "This is the way the game is played," he said. "You're going to get negative news."

Cramer said he believes in Johnson. If other people believe in Johnson as well then they should buy some Herbalife, he said.

Behind's Nastech's Big Slide

Nastech Pharmaceutical (NSTK Quote) was down nearly 40% today on news that its partnership with Procter & Gamble (PG Quote) on a nasal spray used to treat osteoporosis had been terminated.