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Cramer: Despite Leadership Concerns, Avon Is a Buy

In April, Cramer put Avon CEO Andrea Jung on his "Wall of Shame," only to remove her later, and recommended homegamers wait for her departure from the company before buying its stock. Well, Jung is still at the helm of Avon , but Cramer now thinks the stock is simply too cheap to pass up.

Since putting Jung on the "Wall of Shame" in April, the stock has dropped from $28 to $22 a share, which is a 21 percent decline. So Cramer thinks the price is right, especially considering it pays a 4.2 percent dividend yield.

Cramer isn't recommending buying this stock solely based on the fact it's cheap, though. He thinks Avon is getting its act together by recently introducing a sales incentive plan. It's also undergoing a major reconstruction, which involves reducing its bloated management structure and simplifying its complex supply-chain strategy. He thinks all of this will take time, but the stock's 4.2 percent yield pays investors to wait.

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