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Charting a Course for Charter

Cramer is sticking to his discipline with the stock. Find out what he plans to do.
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I know a lot of folks are wondering what to do with Charter Communications (CHTR) , now that the stock has pulled back below $4. I'm sticking to my discipline to wait for a further pullback before adding to my 57,500 shares because I've already bought the stock three times right around these levels.

That said, I have to tell you readers that I feel a lot better about this story after talking with CEO Carl Vogel on my television show last night. He confirmed the company will have an equity offering, which in turn will eliminate the remnants of the bear case for Charter.

The question is, will the deal come at $4, $3.50 or $5? I think Charter will get some momentum from the big cable expo this week, especially if someone pays a premium for Adelphia ADELQin the near term. With that in mind, I see the stock being closer to $5 when the offering hits. In other words, if you haven't been buying Charter alongside me, the shares look very attractive at these levels.

Regards,

James J. Cramer

DISCLOSURE: At the time of publication, Cramer was long Charter Communications.