Street Shuns Cisco, Tech
Cisco Systems’ quarter apparently wasn’t bullish enough for Wall Street, as that stock – and tech as a whole – dropped on Thursday. Cramer called the Street’s reaction a mistake, saying that investors took a “negative view about what was a positive call.”
“This was a fulcrum quarter and everyone’s throwing out all of tech,” Cramer said. “It’s ridiculous.”
He thinks business at the company will continue to improve, and he urged investors to use this dip to buy CSCO.
In the financials, it is time to take profits on Capital One Financial, Cramer said. While this is a “great credit-card issuer,” the stock has had a big move. He recommended switching into a smaller name like Huntington Bancshares.
With the official bank stress-test results coming later on Thursday, there was talk on Stop Trading! about which CEOs would survive the year. Cramer guessed that Bank of America’s boss was most likely in trouble, saying, “I think they’re going to make an example of [Kenneth] Lewis.”
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Who would replace the storied CEO? Cramer thought an outsider made the most sense, just as Alan Mulally, formerly of Boeing, moved to Ford Motor. He also suggested any of the top leaders at US Bancorp would work as well.
Cramer's charitable trust owns Cisco Systems.
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