Selling HPQ and Buying GLWby alphadawgg on May 13th, 2008 at 12:19 pm |
Frankly, I’m scratching my head and wondering WTF is HPQ doing? Why are they buying EDS? Yes, I know…to compete with IBM….Uh-huh…..I am doubtful on that one.
When in doubt, I sell. So I’m selling (HPQ: 47.33 +1.13%)
Right now I’m still feeling that tech is a good value. My “pistola to the head” pick, if I had to choose one tech stock right now, would be Corning (GLW: 20.77 -1.00%)
Corning reported a very solid Q1, despite the slowing U.S. economy. The economy failed to put the homo hammer on the worldwide demand for precision display glass used in LCD TVs, and desktop and notebook PC displays. People of today need three things in life: to be entertained, to waste time on the internet, and sex….and food….four things.
Highlights:
Company management guided higher on its 2008 volume growth forecast for global precision glass demand to the higher end of the 25%-30% range.
Top-line growth in the most recent quarter actually took a backseat to cost containment measures. Gross margin increased by 4.50% sequentially, about 3.50% of that gain was estimated to be as a result of operating efficiency.
A fundamental target price would be $33-$35. The PnF chart, based on the count, is showing a technical price objective of $42. However, that is not in stone, nor is it gospel.
Update: I initiated a position in GLW today @ 25.74 (12:14 ET). I sold HPQ @ 43.70 (12:12 ET)
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Why would they buy a low margin outfit?
May 13th, 2008 at 1:36 pmGLW looks good on the P&F…
Peace
GW,
Don’t know why. Gross margin for EDS Q1:2008 was just over 10%.
btw,
GLW not a low margin biz. Gross margin for 2007 was 46.9%, net margin 36.7%.
Q1:2008 saw a sequential increase in gross margin of 4.50% over Q4:2007.
May 13th, 2008 at 2:49 pmI remember not too long ago you could of had all you wanted for $1…what a shame I only traded it.
May 13th, 2008 at 2:51 pmPeace
Anyone know why JPM took a scissor kick to the “boys” this afternoon?
May 13th, 2008 at 4:12 pmnegative AMBAC and MBIA news from moodys
May 13th, 2008 at 4:19 pmJake–Don’t worry. JPM is “too big to fail”. So are the rest of the banks that are trading above $10. Check your in-box for the memo on that.
May 13th, 2008 at 4:22 pmDawg — that would be distressing news, as I’m short JPM.
May 13th, 2008 at 4:26 pmDawgg I bought some GLW. Thanks
May 13th, 2008 at 4:33 pmJake-you’re still ok. Short it to $10. Then you can cover and buy it going back up. That’s about the time Hank and Ben will remind us all of the “too big to fail” lesson. Remember, all major banks get backstopped at $10. It’s soon to be a law.
mrkcbill–good move. I hope you and I make some money on it.
May 13th, 2008 at 4:43 pmDawg — I won’t get greedy… I’ll take JPM to $20. gggg
May 13th, 2008 at 4:45 pmDawg, re: GLW
It is my understanding that they have a significant portion of the diesel oxidation catalyst business mandated by the Gov. These new regulations basically make the diesel engine a portable air cleaner. Seriously, in the 2010 models, the exhaust from school buses, 18 wheelers, etc., will actually be cleaner than the outside air.
I believe that Corning is making the majority of the substrates in these oxidation catalysts. Keep in mind that every commercial diesel vehicle will now have these installed for emissions.
I may be off on some of the specifics here…but I believe I am correct. I have been watching GLW as I think this side of the business may have been missed by the less astute researcher.
May 13th, 2008 at 4:46 pm[...] I’m posting this just in case some of you missed an excellent comment and observation by the Wood-meister in my previous post on Corning (GLW)…. [...]
May 14th, 2008 at 1:49 am