This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Jim Cramer's 'Mad Money' CEO Chats: Xilinx and Avnet

Stocks in this article: XLNXAVT

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

NEW YORK (TheStreet) -- Every night, Jim Cramer sits down with CEOs and executives on his "Mad Money" show to discuss their business, the economy, politics and more. Today we look back at his recent interviews with Moshe Gavrielov, president and CEO of Xilinx (XLNX), and Rick Hamada, CEO of Avnet (AVT), two executives with their fingers on the pulse of the tech sector.

These are excerpts from Cramer's 'Mad Money' Recap, originally published on Jan. 22 and Jan. 24, 2014.

Executive Decision: Moshe Gavrielov

For his "Executive Decision" segment, Cramer spoke with Moshe Gavrielov, president and CEO of Xilinx, an Action Alerts PLUS holding that's proven Cramer's rule of never trading on the headline. After shares plummeted on a penny-a-share earnings beat with weaker guidance, they quickly rebounded up 2.2% as savvy investors looked at the key metric, Xilinx' new 28-nanometer chip sales, which were up 79% year over year.

Gavrielov said that while Xilinx was only able to deliver at the low end of its revenue range for the quarter, its other metrics came out just fine. He said the company is still on track for 2% to 6% growth for the early and still in the early innings of the new 28 nanometer rollout.

When asked why 28 nanometers is so important, Gavrielov explained these new, smaller chips are necessary to bring features like video to cellphones. Video is very demanding on both phones and infrastructure, he noted, which is why we're seeing a surge in spending to keep wireless customers happy around the globe.

Turning to the topic of gross margins, Gavrielov said that while margins came in lighter this quarter, he fully expects Xilinx other, higher margin businesses to catch up later in 2014, returning their margins to traditional levels.

Cramer said pointedly that shares of Xilinx are headed higher.

Executive Decision: Rick Hamada

For his "Executive Decision" segment, Cramer once again checked in with Rick Hamada, CEO of Avnet, which just delivered a six-cents-a-share earnings beat on better-than-expected revenue and upside guidance. Despite the upbeat news, shares are now trading more than $2 less than when the company reported, thanks to the overall market weakness.

Hamada had many positive things to say, noting that last quarter saw record revenue for Avnet and the company continues to do the right things over time and deliver for shareholders.

Hamada noted that Avnet's component business, which had seen strong growth last year, saw double-digit increases this quarter. He said solutions, offering hardware, software and services as a package deal to customers, continue to be a driver in its business.

Finally, Hamada said Avnet still has a lot of room left on its share repurchase authorization, so the company will be taking advantage of weakness in the shares to buy back more stock.

Cramer reminded viewers that sometimes good companies go down through no fault of their own, and Avnet is one of those companies.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

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, D.C.

To email Scott about this article, click here: Scott Rutt

Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

At the time of publication, Cramer's Action Alerts PLUS had a position in XLNX.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,814.94 -2.96 -0.02%
S&P 500 2,067.03 -2.38 -0.12%
NASDAQ 4,758.2520 +3.36 0.07%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs