NEW BULLISH Plays
Corning Inc. - GLW - close: 24.86 change: +0.31
Stop Loss: 23.20
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Entry on February -- at $---.--
Listed on February 12, 2015
Time Frame: 8 to 12 weeks
Average Daily Volume = 8.5 million
New Positions: Yes, see below
Why We Like It:
The future is going to look amazing if GLW has its way. The company makes a number of different products but it's probably best known for its glass. At a recent shareholder meeting GLW said they're working on a new type of glass that will allow companies to make LED TVs as thin as your smartphone.
Last year they introduced Gorilla Glass 4, which is the latest innovation in the Gorilla Glass line of scratch resistant glass that is already on three billion products around the world from smartphones, tablets, laptop PCs and more. GLW believes their new Gorilla glass automotive designs will help car companies reduce weight so carmakers can achieve the U.S. regulations to double miles-per-gallon performance by 2025.
Large screen TVs will continue to get larger. GLW said that the large-size TV display industry grew more than 50% last year. Right now the average TV screen is growing more than 1 inch per year. Every inch in screen size adds about 150 million square feet of additional glass demand.
The company describes itself as "Corning (www.corning.com) is one of the world`s leading innovators in materials science. For more than 160 years, Corning has applied its unparalleled expertise in specialty glass, ceramics, and optical physics to develop products that have created new industries and transformed people`s lives. Corning succeeds through sustained investment in R&D, a unique combination of material and process innovation, and close collaboration with customers to solve tough technology challenges. Corning`s businesses and markets are constantly evolving. Today, Corning`s products enable diverse industries such as consumer electronics, telecommunications, transportation, and life sciences. They include damage-resistant cover glass for smartphones and tablets; precision glass for advanced displays; optical fiber, wireless technologies, and connectivity solutions for high-speed communications networks; trusted products that accelerate drug discovery and manufacturing; and emissions-control products for cars, trucks, and off-road vehicles."
Last year the company delivered very consistent revenue growth. Their 2014 Q1 revenues were up +31.7%. Q2 revenues rose +27.5%. Q3 saw sales up +25.7%. GLW just reported their Q4 results on January 27th. Revenues soared +29.8%. Earnings were up +55% from a year ago to $0.45 a share, which was seven cents above Wall Street estimates. GLW management said, "We are entering 2015 with positive momentum in all of our businesses."
Investors have been consistently buying the dips in GLW. Today shares challenged their January highs and look poised to breakout to new multi-year highs. Tonight I am suggesting a trigger to open bullish positions at $25.20. We'll start this trade with a relatively wide stop loss at $23.20.
Trigger @ 25.20
- Suggested Positions -
Buy GLW stock @ (trigger)
- (or for more adventurous traders, try this option) -
Buy the May $25 CALL (GLW150515C25) current ask $1.10
Option Format: symbol-year-month-day-call-strike