Corning, Inc. (NYSE:GLW)

CAPScall in support of my pitch at http://beta.fool.com/symie5/2012/12/01/should-company-worried-about-next-gen-displays/17636/

Corning has been in business for over a century, their balance sheet is near immaculate and they are transforming right along with the tech industry. Gorilla Glass is their "rising star" at this point, who knows where this product could lead them years down the road. GLW is just realizing the tip of the iceberg within the tech glass industry and Gorilla glass is turning into a silver back.

Corning's diversity of offerings, investment in research are second to none!

A superbly run company with a long history of generating both cash and innovation.

Perhaps It's most famous asset-'Gorilla Glass' has stellar growth prospects in my opinion. This has not been fully priced in as the smartphone market has only just begun to explode. Penetration of such devices in most of Asia,Africa,Latin America etc is minuscule when compared to major Western economies. The same can be said of Corning's historic growth provider- the screen glass for LCD TVs. There may be a temporary lull in the global economy at present but many, many people around the world will want a big shiny TV in their house as soon as they can afford to have one. This is not likely to change for a generation and is only now becoming a possibility for many of the expanding middle classes in much of the most populous parts of the world.

The company pays a decent dividend and is priced more like a utility instead of the super growth stock it might be if and when the world economy picks up at greater pace.

Down-side is, at this price (even accounting for recent gains in the last few days), limited and Corning is my largest investment now having been topped up four times in the last month!

Corning has fallen on hard times since the TV display business is not doing well now. However, both gorilla glass and fiber optic cables will eventually pick up. These are the display and telecommunications segments, which get most of the attention.

Corning has 5 segments of the company, and I look to both environmental and life sciences divisions to play an increasingly important role in a world where both pollution control and lab research to help people overcome health threats is part of the new normal.

While the specialty materials segment has about 150 combinations of glass, ceramics, and crystals it sells for various uses, some day better uses for these materials will possibly be found, as with gorilla glass.

Corning is one of the few technology companies positioned to sell its products no matter which particular manufacturer wins the smart phone or tablet wars. Perhaps over 160 years of experience with innovation has had something to do with not only excellence in products but strategic positioning of the company.

This stock is a steal at this level. Trading below book value.
Solid dividend.
Gorilla glas.
Makes gorilla glas to all the major smartphone-makers.
Optic fiber consuming will pick up again.

I am a little worried if LCD will tank further.
But all in all a strong buy.

outperform

Lurking close to its 52 wk low, Corning is working through some potentially lucrative R&D, manufacturing innovations. The thin film glass (flexible) for touch screens is one. Meanwhile a recent tender is dramatically reducing debt cost. Looks like good management in a dip to me

Development of Willow glass in addition to Gorilla glass is example of product development. Dividend was raised.

lcd profits are dropping faster than other business sectors can pick up for Corning. As a result the stock has gone on sale.

It is not like like LCD is going the way of the dinosaur or the land line. Sales are dropping, but there is a bottom. All the while smart phones are going to keep building. This is a solid company, selling at a good p/e and a nice dividend. They have plenty of cash on hand... buy!

My only real concern going forward is if an alternate material is found to cover screens going forward.

With some stocks, you just have to wait until they dip back to their appropriate value before you buy. Now that GLW is around $11.50, I'm buying.

With the prez election taking its toll on the market, bargains are there to be had and GLW is one. It may retreat some more, but nothing substantial from here. I think it will be back to $13/share if not more by early next year.

Decline in LCD Display sales from television manufacturers and a faster than expected decline in PC sales will show decreased revenue in it's largest segment. LCD Display Technology makes up nearly 80% of the company's revenue.

Despite good growth in Gorilla Glass, the company's specialty materials segment does not even come close to making up for lost ground in LCD Displays.

Its other business segments continue to lose revenue and profit as well.

pc market will pick up for holiday sales, and gorilla glass, plus a dividend.

Positive:
- Solid business for cheap (below tangible book)
- Cyclical slow down at least partly priced in (more so than in the S&P500) -> I expect relative outperformance
- Lots of cash, low debt, good dividend
- Truly innovative company

Negative:
- Ugly chart
- Cyclical stock not optimal close to the cycle top

Category: R13BRp

Solid company with a strong balance sheet and well protected dividend selling at historically low levels.

Undervalued.

The leader in tablet and phone display technology, a massive growth industry. Gorilla Glass is now on a billion devices world wide. Let's hope the other aspects of this business don't drag it down like their LCD segment.

It's going to take some time for the LCD segment to heal and for the company to continue to diversify away from it.

They provide the glass for tablets and smart phones. Hello, big growth industry!