JDS Uniphase (JDSU) has dipped below $3, where I'm ready to buy another 2,500 shares. The stock will be supported by the company's strong balance sheet, and there's a lot of recent evidence that the major telcos are accelerating their rollout of fiber network upgrades. This purchase will give me a total of 42,500 shares of JDSU.
I'm also going to pick away at 500 shares of Cumulus Media (CMLS) , rounding my position up to 5,000 shares. Like Univision UVN, the company has tremendous operating momentum. Management is also improving Cumulus' balance sheet by using the company's tremendous cash flow to pay down debt.
Time Warner (TWX) is essentially flat for the day, and I'm going to sell another 1,500 of my 4,000 shares for a 15% gain. Again, we're circling the wagons around Charter Communications (CHTR) and Comcast (CMCSA) . This sale also raises some cash for a new position in Kmart KMRT on a pullback, or another round of picking away at my One-rated stocks after the next dip in the broader market.
P.S. There's a very upbeat article in the Los Angeles Times today that confirms my bullish stance on Charter. Despite rumors to the contrary, Paul Allen and CEO Carl Vogel clearly are on the same page when it comes to turning the business around. Keep in mind that this is still a contrarian play, and I'd add to my 65,000 shares if Charter dropped below $3.50.
Regards,
James J. Cramer
DISCLOSURE: At the time of publication, Cramer was long JDS Uniphase, Cumulus Media, Univision, Time Warner, Charter Communications and Comcast.