Why Cisco Looks Right

Patricia Russo didn't know what she was doing at Lucent. Now it looks like she doesn't know what she is doing at Alcatel-Lucent (ALU - commentary - Cramer's Take). What a horrid quarter.

But there's a more important thing here than just the mistaken shore-leave of these two drunken sailors. It's a sign, once again, that the stock everyone is leaving, the stock that no one wants to touch any more -- Cisco (CSCO - commentary - Cramer's Take) -- is so right.

Keep in mind that the market for communications equipment is huge and growing, courtesy of the arms race between cable and telco. But also remember that the field used to be crowded: Lucent, Alcatel and Nortel (NT - commentary - Cramer's Take) were all gunning for this business.

There was some worry that maybe, just maybe, Lucent-Alcatel could be a competitive powerhouse to Cisco. We now know after this miserable quarter that such a colossus challenger is strictly a mirage.

Cisco's come down a lot. I believe numbers are too low. This now represents one of the few tech stocks that can be owned through this period with a buy on dips.

Recent troubles at Motorola (MOT - commentary - Cramer's Take), another Cisco competitor for cable, and Tellabs (TLAB - commentary - Cramer's Take), which just reported a stink-o quarter and yet is always considered to be a company nipping at Cisco's heels, show more dominance ahead for Cisco.

I would buy today off this horrible quarter from France.

Random musings: Credit Suisse gets behind Under Armour (UA - commentary - Cramer's Take). That's a good call. ... As predicted, the market liked the Take-Two (TTWO - commentary - Cramer's Take) scandal news, even as it was as ugly as it gets. ... The market also likes no financials at Krispy Kreme (KKD - commentary - Cramer's Take). Only a total cynic can understand this tape.

At the time of publication, Cramer had no positions in the stocks mentioned.

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