Cramer's 'Mad Money' Recap: Good Earnings, Bad Market
When asked how those customers are faring given the declines in PC sales, Hamada says he sees a mixed bag around the globe, with Asia on the mend and Europe close to stabilizing. He said once those markets return to growth, Avnet will be well-leverages to take full advantage.
Turning to new technology, Hamada says the new revolution won't be phones or tablets, but an Internet of things and devices, all of which will require continued investments in infrastructure to support the next wave of new applications.
Finally, when asked about his company's planned use of cash, Hamada said Avnet is always looking for acquisitions, but they are also committed to its share repurchase program given how inexpensive their stock has become.
Executive Decision: Jim Griffith
In his second "Executive Decision" segment, Cramer spoke with Jim Griffith, president and CEO of Timken (TKR), a stock that's up 30% since Cramer visited the company in Ohio in October of last year.Griffith said that despite a weaker-than-expected second quarter, he's still bullish for growth in the second half of 2013. He said that his company's business in China is beginning to pick up, something that will benefit them greatly over the rest of the year. When asked to comment on the analysts calling for the company to split itself in two, Griffith said that those analysts simply don't think Timken's growth is sustainable and are therefore giving the company a far lower multiple. He said those who take the time to understand the company realize that Timken is not just about making steel, they in fact use proprietary technology to create value for their customers. That's why Timken had record profitability in 2012, he added. When asked for more clarity on the company's China operations, Griffith said Timken does $300 million in sales from China and $40 million of that comes from U.S. steel that's exported to China. He noted that if the company were to split itself into two, it would lose the synergies and relationships that allow it to be one of the few companies that actually imports into China.
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