Buy Cisco (aldus Jim Cramer)
When Cramer interviewed outgoing CEO John Chambers on Wednesday, he saw a feisty guy who put his company in an untouchable lead. The company was in trouble two years ago. "Was I concerned about Cisco at the time? For a couple of quarters, absolutely. I worried until it became clear that Chambers was concerned about it too," said Cramer. It was then that Chambers unveiled various networking products that caught the competition totally off guard. The products even had security built right into them. Also, when Europe was in trouble, Cisco blew away the numbers with the amount of orders it had in hand.
"In short, over the course of two years, Chambers restored Cisco to its rightful place as the unchallenged king of the networking equipment industry," said Cramer. He thinks it is right time for Chuck Robbins to take over as the company is in a leading position, and he suspects it will blow through the roof as competition has fallen.
"I can't imagine Robbins being any less tough on competitors than Chambers has been. There doesn't seem to be anything in his DNA that would indicate a kinder, gentler Cisco at least when it comes to the competition. He impresses me as a take-no-prisoners kind of guy which is exactly what is needed," said Cramer. He added that the company is in full strength and the stock is down after a quarter which gives investors a great opportunity to buy.
bron: seekingalpha.com