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Corning (NYSE:GLW) recently unveiled a new flexible Glass, called "Willow Glass". It is extremely thin, versatile and rather durable in nature. It can be made as thin as 0.05 mm, which is significantly thinner than the current 0.2mm display glass. It has the potential to completely revolutionize the smart phone, TV, Laptop and tablet industry due to its thinness, durability and extreme flexibility. It could even replace gorilla glass, which is used on many of the above stated devices. Due to its nature, it could be incorporated in a host of products that have yet to be invented. For example, roll up tablet computers and it may perhaps also be of use to the solar industry. If Willow Glass is embraced widely, it could provide a significant boost to the company's bottom line.

Reasons to be bullish on Corning Inc.

  • A low payout ratio of 16%
  • An excellent retention ratio of 84%
  • An acceptable yield of 2.3%
  • Year over year projected growth rate of 13.5% in 2013.
  • Profit margin of 31.9%
  • A five-year sales growth rate of 7%
  • A low long-term debt to equity ratio of 0.15
  • A five-year dividend growth rate of 4.9%
  • A projected 3-5 year EPS growth rate of 8.5%
  • A splendid current ratio of 5.5
  • A great quick ratio of 3.67
  • A very good interest coverage ratio of 36.7%
  • Net income increased from $2 billion in 2009 to $2.8 billion in 2011
  • Cash flow increased from $1.87 in 2009 to $2.38 in 2011
  • A good free cash flow yield of 5.35%
  • Annual EPS before NRI increased from $1.41 in 2007 to $1.76 in 2011
  • Sales rose from $5.3 billion in 2009 to $7.8 billion in 2011
  • $100K invested for 10 years would have grown to $424K. If the dividends were reinvested the rate of return would have been higher


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Suggested strategy

Divide your money into three lots and deploy one lot in the 12.50-13.00 ranges. If it closes below 11.50 on a weekly basis, it could test its five year lows in the 8.00-10.00 ranges. If this occurs deploy the second lot. A weekly close above 14.50 will turn the trend bullish and at this point traders can deploy one more lot. Another option would be to sell puts at strikes you would not mind owning the stock at. It is like getting paid to wait for your order to get filled. If the stock does not trade below the strike price you at least get to keep the premium and repeat the process all over again.

Company: Corning Inc

Brief Overview

  1. Percentage Held by Insiders = 0.35
  2. Profit Margin = 31.94%
  3. Operating Margin = 21%
  4. Quarterly Revenue Growth = -0.2%
  5. Quarterly Earnings Growth = - 38%
  6. Operating Cash Flow = 3.38B
  7. Beta = 1.6

Growth

  1. Net Income ($mil) 12/2011 = 2805
  2. Net Income ($mil) 12/2010 = 3558
  3. Net Income ($mil) 12/2009 = 2008
  4. EBITDA ($mil) 12/2011 = 4259
  5. EBITDA ($mil) 12/2010 = 4808
  6. EBITDA ($mil) 12/2009 = 2808
  7. Cash Flow ($/share) 12/2011 = 2.38
  8. Cash Flow ($/share) 12/2010 = 2.64
  9. Cash Flow ($/share) 12/2009 = 1.87
  10. Sales ($mil) 12/2011 = 7890
  11. Sales ($mil) 12/2010 = 6632
  12. Sales ($mil) 12/2009 = 5395
  13. Annual EPS before NRI 12/2007 = 1.41
  14. Annual EPS before NRI 12/2008 = 1.57
  15. Annual EPS before NRI 12/2009 = 1.35
  16. Annual EPS before NRI 12/2010 = 2.07
  17. Annual EPS before NRI 12/2011 = 1.76


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Dividend history

  1. Dividend Yield = 2.3
  2. Dividend Yield 5 Year Average = 1.5
  3. Dividend 5 year Growth = 4.96

Dividend sustainability

  1. Payout Ratio = 0.16
  2. Payout Ratio 5 Year Average = 0.12

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 8.5
  2. 5 Year History EPS Growth = 8.43
  3. ROE 5 Year Average = 18.76
  4. Current Ratio = 5.5
  5. Current Ratio 5 Year Average = 3.58
  6. Quick Ratio = 3.67
  7. Cash Ratio = 3.16
  8. Interest Coverage = 36.7

Interesting companies

For investors looking for other ideas detailed data has been provided on two additional companies.

Company: General Mills (NYSE:GIS)

Levered Free Cash Flow = 1.25B

Brief Overview

  1. Number of Institutional Sellers 12 Weeks = 2
  2. Relative Strength 52 weeks = 69
  3. Cash Flow 5-year Average = 2.84
  4. Profit Margin = 9.63
  5. Operating Margin = 15.78
  6. Quarterly Revenue Growth = 13%
  7. Quarterly Earnings Growth = - 2.00%
  8. Operating Cash Flow = 1.94B
  9. Percentage Held by Institutions = 70%
  10. Short Percentage of Float = 1.3

Growth

  1. Net Income ($mil) 12/2011 = 1798
  2. Net Income ($mil) 12/2010 = 1531
  3. EBITDA ($mil) 12/2011 = 3247
  4. EBITDA ($mil) 12/2010 = 3063
  5. Net Income Reported Quarterly ($mil) = 392
  6. Cash Flow ($/share) 12/2011 = 3.32
  7. Cash Flow ($/share) 12/2010 = 3.05
  8. Sales ($mil) 12/2011 = 14880
  9. Sales ($mil) 12/2010 = 14797
  10. Annual EPS before NRI 12/2008 = 1.76
  11. Annual EPS before NRI 12/2009 = 1.99
  12. Annual EPS before NRI 12/2010 = 2.3
  13. Annual EPS before NRI 12/2011 = 2.48


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Dividend history

  1. Dividend Yield = 3.3
  2. Dividend Yield 5 Year Average =2.8%
  3. Dividend 5 year Growth = 10.73

Dividend sustainability

  1. Payout Ratio =51%
  2. Payout Ratio 5 Year Average = 0.46

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 7.33
  2. ROE 5 Year Average = 24.71
  3. Current Ratio = 1.00
  4. Current Ratio 5 Year Average = 0.9
  5. Quick Ratio = 0.63
  6. Cash Ratio = 0.31
  7. Interest Coverage Quarterly = 6.97

Company: Abbott Labs (NYSE:ABT)

Levered cash flow = $8.85 billion

Growth

  1. Net Income ($mil) 12/2011 = 4728
  2. Net Income ($mil) 12/2010 = 4626
  3. Net Income ($mil) 12/2009 = 5746
  4. EBITDA ($mil) 12/2011 = 8773
  5. EBITDA ($mil) 12/2010 = 8890
  6. EBITDA ($mil) 12/2009 = 9803
  7. Cash Flow ($/share) 12/2011 = 6.66
  8. Cash Flow ($/share) 12/2010 = 5.9
  9. Cash Flow ($/share) 12/2009 = 5.1
  10. Sales ($mil) 12/2011 = 38851
  11. Sales ($mil) 12/2010 = 35167
  12. Sales ($mil) 12/2009 = 30765
  13. Annual EPS before NRI 12/2007 = 2.84
  14. Annual EPS before NRI 12/2008 = 3.32
  15. Annual EPS before NRI 12/2009 = 3.73
  16. Annual EPS before NRI 12/2010 = 4.17
  17. Annual EPS before NRI 12/2011 = 4.67


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Dividend history

  1. Dividend Yield = 3.2
  2. Dividend Yield 5 Year Average = 3.00
  3. Dividend 5 year Growth = 9.7

Dividend sustainability

  1. Payout Ratio = 0.59
  2. Payout Ratio 5 Year Average = 0.44

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 7.68
  2. 5 Year History EPS Growth = 13.58
  3. ROE 5 Year Average = 28.51
  4. Current Ratio = 1.53
  5. Current Ratio 5 Year Average = 1.43
  6. Quick Ratio = 1.32
  7. Cash Ratio = 0.83
  8. Interest Coverage Quarterly = 14.88

Conclusion

Long-term investors can use strong pullbacks to open up positions in stocks they would not mind owning for the long haul. A great way to get into a stock at a price of your choosing is to sell puts at strikes you would not mind owning the stock at.

Disclosure:

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.EPS and Price Vs industry charts obtained from zacks.com. A major portion of the historical data used in this article was obtained from zacks.com. Consensus estimate analysis table sourced from reuters.com. Revenue by segment pie chart sourced from zacks.com

Disclaimer: This list of stocks is meant to serve as a starting point. Please do not treat this as a buying list. It is imperative that you do your due diligence and then determine if any of the above plays meet with your risk tolerance levels. The Latin maxim caveat emptor applies-let the buyer beware

Source: Corning Inc: A Play With Potential That Is Trading Below Book