Pull a Cisco (CSCO) for Sysco (SYY) Swap - Cramer
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Sysco Corp. (NYSE: SYY) is trading relatively flat today, amid the market sell off, as Jim Cramer is suggesting that investors trade their shares of Cisco (Nasdaq: CSCO) for the Houston, TX-based food wholesaler.
Cramer says that the supplier of items like dairy, meat, frozen foods, and more is a constant earner with a 3.6% dividend yield to boot. On the other hand, Cramer has always disliked Cisco, and their recent first quarter earnings flub reinforces his views. He also said that the $10 billion buyback brings no real value to shareholders, and thinks they're devoid of momentum or any hope of a turnaround.
Cramer notes that, with restaurant stocks in full turnaround mode, Sysco should be catching up fairly soon as they derive 62% of their revenues from restaurants. Sysco also passes cost inflation directly on to their customers.
The words were none truer today, as Cisco hit a recent 52-week low and Sysco seems to be right in the middle of their 52-week trading range. Cisco also has yet to instill a dividend for their shareholders, though promises have been made that that may occur sometime before the end of 2010.
Cramer says that the supplier of items like dairy, meat, frozen foods, and more is a constant earner with a 3.6% dividend yield to boot. On the other hand, Cramer has always disliked Cisco, and their recent first quarter earnings flub reinforces his views. He also said that the $10 billion buyback brings no real value to shareholders, and thinks they're devoid of momentum or any hope of a turnaround.
Cramer notes that, with restaurant stocks in full turnaround mode, Sysco should be catching up fairly soon as they derive 62% of their revenues from restaurants. Sysco also passes cost inflation directly on to their customers.
The words were none truer today, as Cisco hit a recent 52-week low and Sysco seems to be right in the middle of their 52-week trading range. Cisco also has yet to instill a dividend for their shareholders, though promises have been made that that may occur sometime before the end of 2010.
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