Is it Really Time to Sell These Stocks?: Hewlett-Packard Company (HPQ), Corning Incorporated (GLW)

Corning has been more than successful with its Gorilla Glass products. It sells this product to high-end smartphone manufacturers, and this industry has shown mammoth growth in the last couple of years. The shift of computing to touch-based devices should increase the demand of tough glass products such as Gorilla. The release of Microsoft Corporation (NASDAQ:MSFT)’sWindows 8 should also fuel Gorilla demand, because this is the first touch version of the world’s biggest OS.

The last quarter results of Microsoft indicate that the new Windows 8 and WP8 are gaining some traction. A lot depends on the sale of Nokia’s Lumia series and Ultra-books with Windows 8. I believe the prospects of Surface, Ultra-books, WP8, etc. are bright, and they will positively affect the valuations of Microsoft. The primary obstacle to the success of Windows 8 is the existing domination of Android and iOS in the handheld market. I believe Microsoft remains a strong buy due to its cheap valuations and above-average dividend yield of 3.3%.

You can read my detailed take on the effect of these catalysts on Corninghere and Microsoft’s earnings report here.

In the last six months institutional investors have sold approximately 109 million shares, which has reduced institutional ownership by 10.9%. The stock is currently trading at a forward P/e of 9.4x and offers an attractive 2.9% dividend yield. The sell side is pricing the stock at $14.50; that is a 16% upside at current levels.

The article Is it Really Time to Sell These Stocks? originally appeared on Fool.com and is written by Mohsin Saeed.

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