"Corning Inc. (NYSE: GLW) still offer great value," says Nathan Slaughter. In his Half-Priced Stocks newsletter, the advisor explains, "Corning is a 150-year-old company that is involved in some of today's most exciting cutting-edge technologies."
The advisor notes that in the 1870s, the company developed the glass used in Thomas Edison's first light bulb. In later years, it was instrumental in advancements like the television cathode ray tube and even designed the surface of the Hubbell telescope.
Today, he points out, Corning is best known for the glass substrates used to make liquid crystal displays (LCD). In fact, the company dominates 50% of the global market for the thin glass panels used in computer monitors and televisions.
In addition, Corning does have a stake in a number of other fast-growing fields such as fiber optics, diesel engine pollution control, and scientific laboratory instruments. And, he adds, through its 50% ownership stake in Dow Corning, the firm boasts more than 7,000 silicone-based products that run the gamut from fuel additives to solar power cells.
Slaughter states, "In short, Corning's products have hundreds of applications and are used in everything from astronomy to aerospace defense."
On the telecom front, he explains, Corning's bendable fiber (which can be bent around corners with no signal loss) is expected to be a 'game changing' breakthrough -- opening up high-speed voice, Internet, and HDTV to millions of residences around the world. Already, he observes, key service providers like Verizon (NYSE: VZ) have expressed interest.
He says, "Though the company struggled mightily after the tech bubble popped several years ago, it has since mounted a powerful comeback and strengthened its balance sheet.
"In fact, Corning now sports $1.7 billion in cash (net of debt) on the books. And while its business is somewhat capital intensive, the company still generated in excess of $600 million in free cash flow last year.
"As a result, management has had the confidence to reinstate its quarterly dividend payments (which were discontinued in 2001) and is also diligently buying back shares. And looking ahead, we see further good news on the horizon.
"Based on our fair value calculation of $32, the stock has the potential to gain about 23%. Given the explosive growth expected in some of its core markets, it wouldn't surprise us to see the shares march even higher."
Each day, Steven Halpern's TheStockAdvisors.com features the latest investment commentary and favorite stocks of the nation's leading financial newsletter advisors.
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Reader Comments (Page 1 of 1)
1-03-2008 @ 11:21AM
JIM CARROLL said...
Finally with the advent of FIBER OPTICS here and GLW's bendable F.O. this stock is going to soar above all competition AND NEVER LOK BACK. All major optics corp.(vz,sne,ssnlf...) will be knocking on thier door.