This is a stock that has caused a lot of heartache for a lot of investors due to its inability to gain ground. There have been many times in the past few years when it looked like it was about to breakout, only to fall back after some unwelcome news. However, the time for this stock may have come and its chart looks fantastic. Shareholders of Corning (GLW) hope it’s for real this time.
It’s All About The Future
The interesting thing is that its adjusted earnings actually missed expectations, but bullish comments about the future for each of its business units catapulted the stock to new highs on huge volume. As usual, it is what the company says about the future that matters much more than what just happened in the past.
The fundamentals have been strong for sometime, yet the stock didn’t seem to go anywhere. GLW sports a strong profit margin of almost 51%. Add in a solid ROE of 19.5% and a reasonable valuation of about 10x earnings, and the fundamentalists are quite happy. However, they aren’t the only ones.
Take a look at the chart. That breakout on huge volume is a thing of beauty and would make any technician salivate. There is no overhead resistance at this point and the high volume indicates that institutional activity is heavy, which means demand for the shares is big. The stock had been basing in the $18-$19 area for quite a while, which will now act as strong support.
This could be the start of a long ascent for shares of Corning. As long as management executes, I think the stock has a chance to hit $30 in the next 12-18 months which would be an excellent return from these levels. This is a stock where the fundamentalists and the technicians can live in harmony.
Getting Technical: Textbook Breakout For An Old Favorite is an article from: 
