# Corning (GLW)



## peterk (May 16, 2010)

I'm interested in hearing your thoughts on Corning. I'm having a hard time explaining why it's priced so low by the market. All measures seem to indicate strong growth over the last 5 years. I guess they had some trouble during the dot-com days but it seems like they've recovered. Their three main sectors: LCD screens, fibre optics, and engine filters, seem to be doing quite well.
I guess the main concern is the price squeezing on LCD technology as they sell for less and less each year in the market. But Corning has certainly been able to hold its market share and profitablilitty of LCD glass through the past decade of the technology's growth, despite lower prices.


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## funinagg (Jun 10, 2010)

i am watching it as well. i have not gone into the details but would hold off buying until price rises over 200 days MA.


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## OptsyEagle (Nov 29, 2009)

I believe the market is concerned that this new LED technology is a better technology then LCDs and Corning's business in it will eventually go the way Kodaks film business went and its stock will follow the same path.


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## Potato (Apr 3, 2009)

I had a look. I don't have many warm fuzzy feelings for the future of display glass, which is the vast majority of their business. However, the balance sheet is strong, and the company has a good history of reinventing themselves as times change, so I think they should do fine.


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## Sherlock (Apr 18, 2010)

Bought today. I believe it's in deep value territory and there's been a lot of insider buying recently.


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## Kiwi (Sep 19, 2010)

*Corning (deep value)*



Sherlock said:


> Bought today. I believe it's in deep value territory and there's been a lot of insider buying recently.


Corning is massively undervalued for a few reasons: 1) it has way more cash than debt so it can live to fight another day and it will continue with the buyback and the dividend growth program already in place. 2) All of its businesses are at the bottom of the economic cycle and are leveraged to a recovery (TVs, adhesives, solar), the telecom business will benefit from fibre to the home programs and the company bought Beckton Dickson’s glass business. 

Also, the TV business, the solar business and the adhesive business are structured as joint ventures where it owns less than 51%. Net impact, any growth in these businesses gets consolidated post tax at the parent JV and is then 100% beneficial to EPS i.e. TV JV adds 3 cents in EPS (corning’s share) then Corning’s EPS will grow by 3 cents. 

If your time frame is a couple of years you will do fine. Worse case scenario you get a 3% dividend yield. 

Good luck investing.


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## PMREdmonton (Apr 6, 2009)

Their old money maker was LCD screens.

They do make Gorilla Glass 2 which is the super strong and thin glass that is in most smartphones these days. I don't know how much of their profits today comes from this form of glass but it could be an earnings driver for them from awhile.

I do believe they are making lots of fiber optics these days which are in demand.

I also understand they have a burgeoning life sciences division but I am not sure what marketable products they have.

This company has a strong history of resiliency and innovation so I wouldn't count them out but with the huge loss of revenue due to the oversupply in LCD screens a year ago on the basis of an expected surge of 3D-TVs that never materialized I am not sure about their short-term earnings forecasts. That was a huge blow to them.


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