Asked whether that decline stemmed from an overall decline in PC sales, Hamada said that PCs represent only about 10% of Anvet's business. However, he noted PCs also require infrastructure, including networks and data centers. So when PCs are slowing, so, too, are other areas of tech.
Hamada said that overall, many customers are being cautious, only acting on short-term projects that add instant value to their businesses. He said in 2008 and 2009 liquidity was the problem, but today companies are simply delaying projects until the last minute.
Hamada did note that Avnet remains an active buyer of its own stock at these levels and is only about halfway through its $750 million buyback program.
Cramer said at these depressed levels, Avnet is attractive, as all of the bad news is already priced into the stock.
Delivering on PromisesThe key to successful investing is admitting when you're wrong and changing when the facts change, Cramer told viewers. That was why he removed Procter & Gamble (PG - Get Report) CEO Bob McDonald from his "Wall of Shame" list of the worst CEOs earlier this year. Cramer explained that he first panned McDonald for not moving fast enough in turning what had become a bloated laggard of a company back into its former nimble self. But it was wrong to add McDonald to his "Wall of Shame" for that reason alone because the new CEO simply didn't have enough time to turn the consumer products goat around. After announcing a $10 billion cost-cutting initiative, McDonald is finally delivering on his promises, said Cramer. The company posted a 10-cents-a-share earning beat on rising gross margins. The P&G official also reaffirmed its guidance and even sounded confident on the conference call. P&G isn't sitting on its laurels. In addition to massive cost savings, the company is innovating with tons of new products that are helping to reinvigorate the brand. Given that the company has an excellent track record of raising its dividend, Cramer said he expects to see Procter returning some of its newfound cash to shareholders in the near future.
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