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However, he does think the advantage has now tilted in the company's favor after a positive pre-announcement of its earnings.
Cramer said the battle over Herbalife is not really about the company, it's about a motivated short-seller who set a price target of zero in hopes the federal government would step in and investigate how Herbalife is accounting for its revenue.But there's two problems with that thesis, said Cramer. First, the company has always delivered consistent earnings and has aggressively bought back over 30 million shares of its own stock as the weakness prevailed. He said CEO Michael Johnson is clearly not afraid of a fight. Second, the U.S. government is a tough ally to have, Cramer pointed out, as it never tells you what it's going to do or if it's going to to anything at all. Plus, you never know what the outcome will be. That's why Cramer said the advantage has tilted in the company's favor, but he's still not willing to make any bets. To sign up for Jim Cramer's free Booyah! newsletter, with all of his latest articles and videos, please click here. -- Written by Scott Rutt in Washington. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC