Shares of Newport Beach chipmaker Conexant Systems Inc. closed up 17% Tuesday after being named “stock of the week” on Jim Cramer’s “Mad Money” show a day earlier.
Cramer, founder of the TheStreet.com who has a cult following for his wacky stock show, said Conexant should be reconsidered in light of a recent upgrade of networking gear maker JDS Uniphase Corp.
“If it’s time to stop hating (JDS), it’s time to start buying (Conexant),” Cramer said.
Cramer, who also is fond of Irvine-based Broadcom Corp., called Conexant a “speculative trade.” He said he sees the company returning to profitability next year.
Even with Tuesday’s surge, Conexant shares still trade for change, at just less than $2 a share. The company has a market value of $900 million.
Conexant on Tuesday said it hired executives for its operations in India and plans to be at 700 workers by month’s end, up from 300 in December.
Late last year, Conexant bought Fremont-based Paxonet Communications Inc. in a deal worth $15 million.
Paxonet provides semiconductor design services. The majority of its operations are in India.
The India expansion is part of Conexant’s bid to cut costs and return to profitability by year’s end.
