Europe obscures the positives from Visa, Cisco
Because of problems in Lisbon and Athens, Visa's and Cisco's strong numbers will be questioned.
By Jim Cramer, TheStreet
Just giving you the only view that matters these days, the view that makes 2010 so hard: Europe's a mess and a competitive mess that makes people think our house is more in order than we thought.
You sell the stocks of the house that's in the best order.
I pondered the other day the incredible notion that if the dollar goes from 1.43 to 1.34 against the euro over the course of a month or two, that's so much more important than Visa or Cisco or Novellus (NVLS) or any other company that seems to be saying that things are darned good.
It is tough enough to deal with companies like Seagate (STX), where my friend Ken Shreve of the Market Movers newsletter believes that the chart looks bad even though the fundamentals look great, without the dollar making the entire S&P 500 look like it has to retest where this move started.
Is there any hope? Yes. Employment claims can change the way we are perceived. Greece and Portugal could fall off the radar screen a la Dubai.
But otherwise, at this pace, we are going to wonder whether Visa and Cisco really were good. Our analysis on them for Action Alerts PLUS -- done without the silly dollar prism -- shows the two best quarters we may have ever seen from these companies in a long, long time.
It would matter on another day.
But because of Lisbon and Athens, we don't like Cisco and Visa.
At the time of publication, Cramer was long Visa and Cisco.
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Shares fell 9 percent during the quarter, which offers a compelling entry price now.
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