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Corning: Beneficiary Of Rising Demand For Glass Display Screens

ByBL
Published 03/21/2013, 06:35 AM
Updated 07/09/2023, 06:31 AM

Corning Incorporated (GLW) is a global, technology-based corporation. The Company operates in five segments: Display Technologies, Telecommunications, Environmental Technologies, Specialty Materials and Life Sciences. Corning is listed in NYSE.

I bought Corning (GLW) at $12.52.

Corning produces Glass Display Screens for Apple's iPad, Apple's (AAPL) iPhone, Sony's (SNE) Bravia TV, Samsung's (SSNLF) Galaxy tablet, Dell's (DELL) laptop computer and Motorola's (MSI) DROID phone.

Slower demand for big screen LCD TV has affected the company. Share price fell and we think that this stock is undervalued now. Corning will benefit from manufacturing of Apple TV, which is going to be the NEXT BIG THING in 2013.

Currently the stock is trading at price-to-book ratio of 0.85 (stock is trading below book value). This means that in the worst case senario of bankruptcy, the company’s assets will be sold off and the investor will still make a profit. If there is no bankruptcy and the company is generating profits, the stock should trade more than the book value.

Even if there is zero growth and cash flows remain flat during the next few years, the stock is still undervalued.

We have seen Directors, Senior Vice President and Vice Chairman buying back the shares (see the trade details below). Their buying price ranges from $10.76 to $15.40. Today’s price is only at $12+. Our entry price is better than most insiders’ trades of Corning.

This company provides a dividend yield of 2.50%. So investors are rewarded with decent dividends while waiting for the share price to go up.

Long term support for GLW is at $10.00 (see the chart below). Currently GLW has rebounded from long term support level. This is a sign that a bottom has formed for GLW.

Corning-Insiders-Trades

Corning-Chart


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