On January 3, 2011, I named Corning (symbol GLW) as the stock of the month for January. At the time, Corning was selling at $19.32. As I write this, the stock last traded at $20.84, a gain of 8% in three weeks. The impetus for this big move was, of course, the earnings announced by the company this morning. The results were quite good in my opinion (and that of the market). Corning's revenues were higher than expected but its earnings missed by a penny. The real news, however, was the stellar growth in the gorilla glass segment and the fact that the TV screen segment did not decline in the way many analysts had feared. After seeing these earnings, I continue to believe that Corning will move forward strongly for the next six months.
When I first recommended the stock, I also suggested that one write the February 20 calls to lower one's purchase price. Given the movement of the stock, one could now roll from the February 20 to the May 21 calls for a credit of 5 or 6 cents. This will provide an annualized gain of over 20% if the stock is over 21 at the May expiration.
Disclosure: I remain long the stock and have written covered calls for part of my holdings.
1 comment:
Nice job. Too bad I hadn't found your site at that time! Looking forward to the February pick and keeping on eye on Corning. Thanks for a superb blog. Jim
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