Jim Cramer -- Don't Write Off VeriFone's Powerful Partnership with Visa

NEW YORK (TheStreet) - Shares of VeriFone Systems (PAYare down 1.3% on Friday despite beating on earnings per share and revenue expectations. 

The stock reaction is on the light guidance on the upcoming quarter as well as weaker-than-expected results in China. However, that weakness should be overlooked, according to TheStreet's Jim Cramer, portfolio manager of the Action Alerts PLUS portfolio.

On CNBC's "Stop Trading" segment, he explained that management was "very humble" about its mistakes in China and expects the company to ultimately improve in that region. 

PAY Chart
Visa V and VeriFone Systems PAY data by YCharts

The company's recent partnership with Visa (V) should also benefit VeriFone. 

"People don't understand how powerful Visa is," Cramer said, adding that Visa recently partnered with cyber security firm FireEye (FEYE) as well. Both partnerships are "significant and they're being undervalued," he reasoned. 

Ultimately, the cash register is a very large market for VeriFone and it would be "foolish" for investors to write this company off, Cramer concluded.

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

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