Don’t forget that you can meet me today at 2pm EST to chat with me on here…
Good hump day morning to you. Or not. Those markets are taking it hard on the chin this morning and many of our stocks are lower too. As much cash as we’ve raised in the last few days when the markets were at their highs, we’ve got some flexibility to navigate this sell off.
Reasons for the sell off today? Heard about the US budget impasse? That short-term panicky action that we have said was likely coming before they miraculously figure out how to keep the government in business sometime in the next couple weeks is here. That, and Juniper, which makes routers for the big telecom networks, missed earnings and guided soft and that’s got our Cisco and our Ciena and our Riverbed all lower today too. I wouldn’t extrapolate Juniper’s marketshare issues (both Cisco and Alcatel-Lucent have been reported to have been taking share last quarter) to the rest of the marketplace, but today their shares will be hit collaterally. I’d likely wait a day or two to let these stocks settle before adding to them, but I do plan on trying to use any big weakness as an opportunity to scale into some more of these collateral damage stocks when I get back next week.
Likewise, Corning, which makes glass for LCD TVs, car engines, and smartphones/tablets is getting hit today and here are the fundamental reasons why:
“Looking forward, we no longer believe that Corning Gorilla Glass sales this year have the potential to reach $1 billion. Rather, we expect sales will be in the area of $800 million. This adjustment is driven by our realization that television cover glass sales will not be as strong as we originally hoped,” Flaws added.
“Overall,” he said, “we are delighted with our sales growth and the market’s acceptance of Corning Gorilla Glass as the preferred cover glass product. Full-year sales are forecasted to be more than triple last year’s performance,” he concluded.
The decline in LCD TV sales trumped the growth of smartphone/tablet sales. We’ve been patient with this Corning and haven’t done much with it since we first added it weeks ago. Unfortunately, this quarterly report probably caps the stock for the near-term, even as the longer-term prospects for the Gorilla Glass segment in tablets/smartphones/new gadgets are as bright as ever.
I’m probably not going to do any more trades today. We did our selling higher when we had the chance.
Hey, and don’t forget that you can meet me today at 2pm EST to chat with me on here. To chat with me and ask me anything you want, meet me at http://tradingwithcody.com/chat. See you there.
