But there was a takeaway that can be acted on. CEO John Chambers took aim at Hewlett-Packard (HPQ), Huawei and Juniper (JNPR) and pretty much said that he had crushed them this quarter. He mentioned that 18 months ago everyone thought they these three were "eating (Cisco's) lunch." Now he said they are all losing share to his company. "We're beating them all."
To me, that means that you have to sell Juniper ahead of its quarter and you can continue to short Hewlett-Packard as that company is getting killed in personal computers, in printers and in consulting (IBM (IBM), Accenture (ACN) and SAP (SAP)) and truly has no leg to stand on or, at this point, raison d'etre.
Although Cisco clearly had a good quarter, certainly better than what I was expecting, what has made the stock reaction so strong is the comments made by five firms, JP Morgan, Opco, Wells Fargo, Wedbush and Jefferies, all of which said negative things about the environment and the guidance they expected Cisco to give. Frankly, I figured all five couldn't have been wrong. But they were. Totally and completely wrong and in a way they, not Cisco, will provide the biggest lift to the stock today.
So, it makes sense that no other stock follows it. Cisco did well despite the economic backdrop and because other companies in its industry faltered. The way to play the strength in Cisco? I would say Cisco, but this stock gets all its moves in a very limited period of time and to me, it just made this quarter's move already.Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long AAPL, BRCM and EMC.
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