Playing Conexant's Quarter
Find out whether Cramer's joining profit-takers or looking to buy lower.
Dear Action Alerts PLUS Subscriber,
Conexant (CNXT) reported a strong quarter last night, and I believe the pullback to $5.65 this morning is just a bit of profit-taking.
The company is taking share in its DSL and cable box divisions, and should be able to build upon its newfound profitability in the coming quarters.
Besides the good fundamentals, I think the market is discounting Conexant's strong balance sheet, which sports $175 million in cash and a handful of strategic investments.
I'm restricted from trading the stock personally, but would be buying Conexant today if I could.
Regards,
James J. Cramer
DISCLOSURE: At the time of publication, Cramer was long Conexant.