Larry House

Corning: Citi Sees Risks Rising

I don't think a "hold" is surprising with overall conditions what they are. I own GLW and will hold it. According to figures from S&P, 45% of GLW's sales come from display panels, and that yields 53% of net income. Telecommunications fiber accounts for 30% of sales and 6% of net. Environment products makeup 13% of sales, and life science (5%) and specialty materials (7%) make up the rest of sales. Over 50% of GLW's sales are in Asia. In addition, GLW owns a stake in Dow Corning, and GLW initiated a $500 million buy back last year. The technical analysis for GLW is of course bearish at this time, but what stock isn't? It would be hard to make a case that GLW is a screaming buy now, since overall economic conditions are slowing down. In my mind it is a good "hold," and I will do that in the hopes of better times ahead. If it gets a little cheaper, I will add to my position.