“Corning, Inc. (GLW) is the leading designer and manufacturer of glass and ceramic substrates found in liquid crystal displays, fiber-optic cables, automobiles and laboratory products. The company has five primary divisions—display technologies, telecommunications, environmental technologies, specialty materials and life sciences. Despite posting Q3 EPS of $0.34, beating analyst estimates by two pennies, shares tumbled on Oct. 24 after the company issued cautious guidance.
“While there are near-term headwinds for GLW to overcome, we feel that the company is well positioned to take advantage of its industry-leading products over the long term. Specifically, the popular mobile device component Gorilla Glass has been gaining momentum lately and has potential to grow in the LCD glass space, while it continues to be a large driver of revenue. We think that Corning will continue to progress as the economy improves, particularly in the telecom and specialty materials businesses. Meantime, the inexpensive valuation (P/E ratio of 9) and 3% dividend yield offer an attractive entry point for investors.”
John Buckingham, The Prudent Speculator, November 2, 2012
