I wish the market wasn't so darned stupid lately. Maybe President Trump's thrusts and parries have thrown investors off their games, but I am becoming increasingly aware that information's not being valued accurately. It's a daily occurrence and it's a big factor in the rally that's been hidden right in front of you until today, which can only be regarded as a consolidation of the recent big move.
Take last night. Cisco (CSCO) , the gigantic networker that's morphing from a hardware to a software company, reports revenues that look anemic and the stock gets banged down instantly. I am sitting there, having done a ton of work for tonight's interview with Cisco CEO Chuck Robbins, and I can see from the deferred revenues, the real number that matters in a software company, that it's a much better-than-expected quarter, especially when you compare it to the previous one. I am aghast that once the stock does tick down the writers are out in force justifying the decline in a self-fulfilling miasma of misreporting, like this gem: "Cisco shares dip as it reports a 25% drop in after-tax profits" by a seemingly reputable news agency.
It's a never-ending battle that sometimes gets won the next day as Cisco immediately rallied to be the strongest stock in the Dow.
Or how about PepsiCo (PEP) . Yesterday morning the company reported a much better-than-expected quarter with exceptional growth and then offered a forecast that took in the obvious challenges of foreign exchange given the super-freaking-strong dollar's ascendancy. (Cisco and PepsiCo are part of TheStreet's Action Alerts PLUS portfolio.)