Corning, Inc. (NYSE:GLW)

CAPS Rating: 5 out of 5

Corning makes specialty glass and ceramics that are used in everything from flat-screen TVs to optical fiber to biosensors for drug research.

Recs

2
Player Avatar ikkyu2 (99.32) Submitted: 11/12/2011 4:46:44 PM : Outperform Start Price: $14.57 GLW Score: -26.60

OK, let's see what GLW has got:

1) $24B market cap, $6B in current assets, $4B in debt. Back out the net cash and trailing P/E is about 6.5.

2) 30% sales growth y-o-y for the last 2 years, although sales took a nasty dip in 2008 so the subsequent comps were easier. Still a nice 20% increase in 2010 sales over 2007 sales; and margins slightly improving over the whole time as well.

3) Management expects double digit profit growth to continue over the next 2 years. CEO and CFO have been with the company about 3 decades each, and are buying stock at $14-ish.

4) This quarter, raised dividend (now about 2% yield) and authorized stock buyback around $13.50. Price is now $15.19.

5) Inventories shrinking as we head into a holiday season that might be a good one.

6) Best-in-breed when it comes to specialty glasses of all kinds. Household word due to their Visions cookware; also make flatpanel TV screens, smartphone screens, etc. Competition has to explain why Corning's product is too expensive or isn't as good in every case; and in some cases (i.e. iPhone 4 glass, which isn't Gorilla Glass) competition is clearly inferior. Corning has set the standard in glass for nearly a century.

I think we're looking at a pretty basic discounted cyclical value play. Anyone with a long term investment horizon ought to be happy to get this company at this price.

Member Avatar ikkyu2 (99.32) Submitted: 5/8/2013 1:07:36 PM
Recs: 0

This stock is broken. No one agrees with my thesis and the stock does not move with the market; it trades in a narrow range.

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