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Friday May 04, 2012
Corning: 'Keep buying'
by Mark Skousen, editor Hot Commodities Corning (GLW), the New York-based producer of specialty glass posted better-than-expected financial results for the first quarter. Revenues rose to $1.9 billion, and profits hit 30 cents a share, ahead of the Street's estimate of 28 cents. Prices and sales of LCD (liquid crystal display) glass (used in televisions and computers) stabilized after two successive quarters of significant declines. The company's CFO stated that he expects LCD glass price declines to moderate in the next quarter. A notable success was the company’s speciality materials segment used in mobile phones and tablets; sales for the segment were up 21% from the previous quarter and 13% year-over-year. The second good news came from Apple, which soared with the news that iPhone sales jumped and net income nearly doubled. Corning supplies the majority of Apple and other tablet manufacturers (Samsung, Dell, Hewlett-Packard, etc.) with its Gorilla Glass. Corning’s glass technology is also a feature on Apple’s iPhone, as well as notebook computers and display devices. The Corning president also gave upbeat guidance for 2012-13. The stock is still selling for only nine times expected earnings and less than seven times operating cash flow. Cash flow has increased 60% in two years. It has a rock-solid balance sheet with more than $3.5 billion in net cash (over 15% of market capitalization) and provides a rising dividend yield of 2.3%. Technically, the stock is building a base to move sharply higher. Keep buying. Learn more about this financial newsletter at Mark Skousen's Hot Commodities. Related articles: 
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