Amazon's Ready to Step Up

The company's strong, and it hasn't given stuff away. It's poised for a nice little jump.
Author:
Publish date:

Editor's Note: Jim Cramer's column runs exclusively on RealMoney.com; this is a special free look at his column. For a free trial subscription to RealMoney.com, click here. This article was published Dec. 21 on RealMoney.

My four-month holding period keeps me from trying to capture a quick four- or five-point gain.

But I think that's what will happen for

Amazon

(AMZN) - Get Report

. I think its business is strong. CEO Jeff Bezos is confident. The company has a lot going for it. And I believe it didn't give discounts this Christmas.

They didn't give the stuff away. I have people emailing me prices fora bunch of products and Amazon is now higher for many of them. That could be huge.

Ever since I heard the Legg Mason mutual fund folks talking this fallabout how this is the breakout quarter for Amazon -- after they met withWarren Jenson, not Bezos -- I've had my eye on this one. I should havebought it then.

I think once the stock gets to $15 the company will have to do some sortof equity deal to get rid of that debt, and it might squelch the stock.But in the interim, good money will be made.

Random musings:

Once again, I reiterate that

Conexant Systems

(CNXT) - Get Report

is just too cheap. It shouldn't be down here. The company's much stronger than its competitors, and the sum of the parts is worth a lot more than its current price.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. At the time of publication, Cramer was long Conexant Systems.

Check out Cramer's

Personal Portfolio, and to find out what trades he'll make before he makes them, sign up for

Action Alerts PLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column to

jjcletters@thestreet.com.