Corning's (GLW) stock has had many false starts over the last six months. However, the stock is dirt cheap, has had some recent positives and also has solid technical support at these levels. For patient investors looking for a long term bargain, its shares are tough to pass up.
Catalysts and support:
- Corning was more than 50% higher less than a year and spent the last month building a technical base in the $12 to $13 range (See Chart)
- Consensus earnings estimates for FY2012 and FY2013 have ticked up over the past month.
- An insider made an almost $2mm buy in March.
"Corning Incorporated produces specialty glasses, ceramics, and related materials worldwide. The company operates in five segments: Display Technologies, Telecommunications, Environmental Technologies, Specialty Materials, and Life Sciences." (Business description from Yahoo Finance)
Four additional reasons to pick up Corning at $13 a share:
- The company has over $3.5B in net cash on its balance sheet or some 25% of market capitalization.
- The stock is selling at the bottom of its five year valuation range based on P/E, P/B, P/S and P/CF.
- Corning is dirt cheap at 91% of book value, 8 times trailing earnings and 6 times operating cash flow.
- The median analysts' price target on the stock is $16 by the twenty analysts that cover the stock. Corning also yields 2.3%.
Disclosure: I am long GLW.