What's in your portfolio?
During Jim Cramer's members-only Action Alerts Plus monthly call, he was asked if selling the shares of CVS Health and using that money to buy Cisco is a good strategy.
Jeff Marks, senior portfolio analyst for Action Alerts Plus, agreed with Cramer.
"This is an investment year. Not an investment year like Disney (DIS) - Get The Walt Disney Company Report , because Disney really gave you that tangible opportunity for growth. CVS just hasn't done it yet," said Marks. "I'm hoping that will come later this summer when they have their investor day."
"[CVS is] just not there yet, and there's a lot of headline risk. The story isn't clean, we know that," he added.
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Is CVS a Good Stock to Buy?
Jim Cramer says, "Okay, that's the good, let's get some bad. Scott, I own CVS Health, CVS, but I think I might be better off selling and using that money to buy Cisco systems. What do you think if that strategy?"
Jeff Marks: Good question.
Jim Cramer: Yeah, I know. When I read it, I said we gotta take this one -
Jeff Marks: We love Cisco.
Jim Cramer: Cisco ... I spent a lot of time, I spent a huge amount of time with Chuck Robinson. I was actually out with a woman named Amy Chang... She was on the board of Cisco and we were both talking about how unbelievably great Chuck is. I mean, really great. I have to tell you, he came to the Eagles game when we played the Falcons. Of course, he had a miserable time. He also had a miserable time when UNC lost.
Jim Cramer: ... I'm gonna be honest here, well I'm not dishonest, for heaven's sake that's stupid. I would buy Cisco right here over CVS.
Jeff Marks: Yeah.
Jim Cramer: Even though, it's all-time high.
CVS Investor Day
Jeff Marks: CVS is ... This is an investment year. Not an investment year like Disney, because Disney really gave you that tangible opportunity for growth. CVS just hasn't done it yet. I'm hoping that come later this summer when they have their investor day. Maybe they shine the Aetna deal. It's just not there yet, and there's a lot of headline risk. The story isn't clean, we know that.
Jim Cramer: We're not traders though, we're not gonna do that trade dead op that Scott is talking about. But, I'm not gonna disagree with it.
Investing Advice: Buy What's Working
Jeff Marks: Right. You wanna buy what's working. You wanna buy low, but you also need what works as well, and Cisco works.
Jim Cramer: Right, and it has to be lower for us, because we like to buy our next buy below where our last one is. It's actually saved us money to do that.
Jeff Marks: Yeah, but at the same time, we're not gonna give up on value either with CVS, because if you look at ... they're not gonna get taken out like Anadarko was, but id we gave up on Anadarko, we'd be kicking ourselves this morning. You can't give up on value.
Jim Cramer: Six times earnings ... CVS, you go to a store, people just think that no one buys anything at the store anymore. That's not true. All right, let's get to the next one. Enough on CVS, just makes me a little sick, you know.
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