GLW
Corning Inc
Industrial/Transportation
08/07/2015
Presented
| Date | 08/05/2015 |
| Price | $18.37 |
| Market Cap | $25.19B |
| Ent Value | $27.96B |
| P/E Ratio | 8.87x |
| Book Value | $15.18 |
| Div Yield | 1.74% |
| Shares O/S | 1,371.00M |
| Ave Daily Vol | 10,263,864 |
| Short Int | 3.47% |
Current
| Price | $45.76 |
| Market Cap | $39.16B |
| Corning, Inc. develops and manufactures specialty glass and ceramics. The company provides glass for notebook computers, flat panel desktop monitors, LCD televisions, and other information display applications; optical fiber and cable and hardware and equipment products for the telecommunications industry; ceramic substrates for gasoline and diesel engines in automotive and heavy duty vehicle markets; laboratory products for the scientific community and specialized polymer products for biotechnology applications; advanced optical materials for the semiconductor industry and the scientific community; and other technologies. It operates through five segments: Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials and Life Sciences. The Display Technologies segment manufactures glass substrates for active matrix liquid crystal displays which are used primarily in notebook computers, flat panel desktop monitors, and LCD televisions. The Optical Communications segment manufactures optical fiber and cable, and hardware and equipment to being a comprehensive provider of industry-leading optical solutions across the broader communications industry pioneer optical fiber, cable and connectivity solutions. The Environmental Technologies segment manufactures ceramic substrates and filter products for emissions control in mobile and stationary applications around the world. The Specialty Materials segment manufactures products that provide more than 150 material formulations for glass, glass ceramics and fluoride crystals to meet demand for unique customer needs. The Life Sciences segment develops, manufactures and supplies scientific laboratory products. Corning was founded by Amory Houghton Sr. in 1851 and is headquartered in Corning, NY. |
Publicly traded companies mentioned herein: Asahi Glass Co Ltd (5201 JP), AU Optronics Corp (2409 TT), Corning Incorporated (GLW), LG Chem Ltd (051910 KS), Nippon Electric Glass Co Ltd (5214 JP), Samsung Electronics Co Ltd (005930 KS)
Highlights
The presenter is short shares of Corning International (GLW) because he believes the global specialty glass, ceramics, and optical physics manufacturer “is facing secular problems and is about to enter a cyclical downturn”. With shares trading at ~$18 and short interest at ~3% he views the entry point and risk/ reward setup as attractive. Central to his thesis is the concern GLW’s true earnings power is potentially as much as $1 per share below the $1.57 per share of future “core earnings” the Street is forecasting. If his estimates prove to be accurate and shares trade at a low teens multiple (fair for a mature business facing cyclical and secular risks) it would imply a $12 price objective (35% downside), with very limited upside risk.
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