OC Good Entry Point

Chart provided by http://www.freestockcharts.com

OC (Owens Corning) specializes in glass fiber material and makes homes more energy efficient. OC has come down to the lower trend line on May 9th and may turn the current stock price to the upside. It has been consolidating for the past two weeks and the bollinger bands are starting to look too skinny. They need to widen out a bit, meaning the stock price should go higher. The Parabolic SARs claim there is a current uptrend present. Stochastics, MACD and RSI aren't showing oversold levels yet, they are at their mid point. With the confirmed lower trend line present, we can expect a bounce off of it, with the stock price reaching as high as $40. This is still a risky play, I would much rather see Stochastics and MACD line up with the lower trend line. But if we see a cross in Stochastics and MACD within the next two trading days, I would say we have a confirmed a price rise towards $40.

Estimates from Fidelity.com

From the Fidelity.com estimates page for OC we can see that Owens Corning earnings are bouncing up and down each quarter. Estimates for the next quarter have them at $0.68 per share. On 10/26/11 their earnings were $0.90 per share, increasing the price from $27.24 to as high as $31.29; in one day! Owens Corning is expected to announce its earnings for Q2 on August 1st. Before then we can expect a nice pop in the price of this stock. House sales are still not where they used to be, but OC has got the product for new home builders. At $33.15 OC is a cheap stock and is a great play.

Let me know what you think about OC. Do you think the housing market will pick back up in 2012 or will it  continue to decline?

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