CSG Systems: Should You Buy It?

That's because as the economy continues to slow down, the major cable and telecom service companies will see more customers close accounts or not pay their bills on time. And as the Comcast's and Dish Network's of the world struggle, they'll look to cut back in what they're spending.

With that in mind, I believe that readers should avoid shares of CSG Systems at current levels. While the company's low P/E ratio and stable recurring revenue stream could limit near-term downside, I don't believe the stock reflects the lower-growth environment that its customers are facing.

With that in mind, the stock could potentially fall 20%-25% from current levels in the coming months.

Know What You Own: Other companies that may be of interest to readers include Automatic Data Processing (ADP - commentary - Cramer's Take), Wipro (WPR - commentary - Cramer's Take), Cognizant Technology Solutions (CTSH - commentary - Cramer's Take), Fiserv (FISV - commentary - Cramer's Take) and Mantech (MANT - commentary - Cramer's Take).

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David Peltier is a research associate at TheStreet.com. In keeping with TSC's editorial policy, he doesn't own or short individual stocks. He also doesn't invest in hedge funds or other private investment partnerships. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Peltier appreciates your feedback; click here to send him an email.

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