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Matthew Lewis

 
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  • San Juan Basin Royalty Trust Cuts Dividend To Virtually Zero; Accounting Errors Partly To Blame [View article]
    Even if you forget about the accounting adjustments the trust units are still ridiculously overvalued. Even at $4 gas you are still looking at a 4-5% yield on a depleting asset. The only way that makes sense is if you believe natural gas prices will rise considerably over the short term. There plenty of better ways to play a natural gas rebound if that is what you believe in.
    Nov 27, 2012. 12:45 PM | Likes Like |Link to Comment
  • Corning (GLW -2.2%) has joined the corporate debt refinancing party. Using a $250M offering of 1.45% senior notes due Nov. '17, the glassmaker has made a tender offer to buy back $75M in 6.75% and 8.875% notes, and plans to spend $174M to redeem 5.9% and 6.2% notes. Corning had $3.4B in debt as of Sep. 30. [View news story]
    Not really. Saves about $12 million a year in interest versus 2000 million (2 billion) in net income per year. Every little bit helps I suppose.
    Oct 26, 2012. 05:42 PM | 1 Like Like |Link to Comment
  • Corning (GLW -8.4%) plummets after guiding in its Q3 report for Q4 glass volumes to be flat to down by "a low-single digit percentage" Q/Q, with accelerating price declines taking place along the way. During its earnings call, Corning also noted its gross margin will decline in Q4, and that its telecom glass business (hurt by a weak capex environment) won't meet its 2012 growth target. The company says it has "no plans" to boost LCD glass capacity. [View news story]
    Well said Mikeurl. My outlook on Corning is for the long term (5+ years). The stock trades under book value, has tons of cash, is reducing share count every quarter buying back shares, and is diversifying their earnings. Yea, the big glass profits are going down, but they aren't going to go away completely. Pick your entry points carefully and I think you'll see high teens again in the next 5 years or so.
    Oct 24, 2012. 01:40 PM | Likes Like |Link to Comment
  • Corning (GLW -8.4%) plummets after guiding in its Q3 report for Q4 glass volumes to be flat to down by "a low-single digit percentage" Q/Q, with accelerating price declines taking place along the way. During its earnings call, Corning also noted its gross margin will decline in Q4, and that its telecom glass business (hurt by a weak capex environment) won't meet its 2012 growth target. The company says it has "no plans" to boost LCD glass capacity. [View news story]
    Interesting to see Specialty materials (Gorilla Glass) finally getting some earnings traction. It's probably never going to be a game changer, but it will provide some good earnings diversification down the road.
    Oct 24, 2012. 11:45 AM | Likes Like |Link to Comment
  • The Best Way To Invest In The Smartphone And Tablet Wars [View article]
    Net income in Q2 2012 for Corning

    - Display technologies - $371 million
    - Specialty Materials (includes Gorilla) - $34 million

    Gorilla glass makes little to no money for Corning. People like to talk it up because its sexy...but the story behind Corning is display. 80% of the profits for the company come from the display segment.
    Oct 24, 2012. 01:08 AM | Likes Like |Link to Comment
  • Buy Corning: Windows 8 Will Be A Major Catalyst For The Stock [View article]
    A couple things.

    You note that "The launch of Windows 8 later this month will benefit Corning immensely". How so? Are more computer monitors going to be sold because of the upgrade? Windows tablets will be using Gorilla glass which as you correctly stated is included in the Specialty Materials segment.

    Additionally you quote the revenue growth of specialty materials because of Gorilla glass, yet don't state that the earnings for that segment. The margins for Gorilla glass are razor thin, and the company actually makes very little money from this segment.

    I'm long the stock, but honestly the story with Corning is all about the Display technologies segment. These other segments give a little revenue and cash flow diversification but little in earnings.
    Oct 10, 2012. 12:22 PM | 1 Like Like |Link to Comment
  • More on Nonfarm payrolls: The labor force participation rate rose to 63.6% from 63.5% - check. The employment-population ratio rose to 58.7% from 58.3% - check. Those working part time for economic reasons soared 582K to 8.6M - there's your drop in the unemployment rate. [View news story]
    Is the bar for success really comparing these numbers against recession triggers? We are stuck in a terrible jobs malaise...normal recoveries should be adding 200-300k in jobs each month. There's no way to spin it, its just bad.
    Oct 5, 2012. 09:30 AM | 1 Like Like |Link to Comment
  • Responding To The Bull Case For Corning [View article]
    The author outlined the reasons it is so cheap nicely.

    I'm bullish because I believe LCD pricing/volume is near the lows and I believe Corning can reinvent themselves over the long term if necessary. This company has been around 161 years...if its not LCD making the money they will find an area in glass that will.
    Sep 27, 2012. 12:09 AM | Likes Like |Link to Comment
  • Responding To The Bull Case For Corning [View article]
    Corning operates a plant in Beijing. Due to their size, balance sheet, and purchasing power they almost certainly produce at a lower cost than other Chinese LCD glass makers.
    Sep 26, 2012. 09:27 AM | Likes Like |Link to Comment
  • Responding To The Bull Case For Corning [View article]
    A well written article. I'm long GLW and believe we are operating near worst case scenario right now. GLW is the low cost producer of display glass, and lower prices would really put some pressure on Corning competitors (maybe the point of negative margins). Lower prices from here would be really tough to sustain over the long term. Quick question....

    You note "But nearly half of that book value is depreciated property and equipment."

    I don't understand what you are getting at here. Should we not trust the depreciated value of these assets?
    Sep 26, 2012. 02:01 AM | Likes Like |Link to Comment
  • ARM Isn't Eating Intel's Lunch: Clearing Up Misconceptions [View article]
    I've not heard any expert or analyst say Intel will have a comparable chip to ARM until this year. Tri-gate transistor is a game changer and ARM has nothing close to it.
    Sep 12, 2012. 01:14 PM | Likes Like |Link to Comment
  • ARM Isn't Eating Intel's Lunch: Clearing Up Misconceptions [View article]
    They'll be a Christmas in 2013 :)
    Sep 12, 2012. 12:40 AM | Likes Like |Link to Comment
  • ARM Isn't Eating Intel's Lunch: Clearing Up Misconceptions [View article]
    Intel chips are already very close to ARM chips with battery life. When the 22nm chips come out next year with new transistor technology Intel may even have the upper hand.
    Sep 11, 2012. 10:27 PM | Likes Like |Link to Comment
  • On day 1 of the Intel Developer Forum (INTC), the company: 1) Unveiled the Next Unit of Computing, a 4" x 4" motherboard featuring everything needed for a miniature PC. 2) Announced it will deliver ultrabooks in Q4 that sport Nuance's (NUAN) Dragon Assistant voice-recognition software. 3) Boasted its Haswell CPUs, due next year, will feature 1/20 the idle power draw of Sandy Bridge CPUs, as well as twice the graphics performance - the latter could be trouble for NVDA and AMD's graphics businesses. [View news story]
    Tri-gate transitors are a beautiful thing.
    Sep 11, 2012. 08:22 PM | Likes Like |Link to Comment
  • ARM Holdings Still Eating Intel's Lunch [View article]
    You can't win when you don't try. They made a conscious decision not to push into phones due to the lower profit margins in the early to mid 2000's. Maybe a mistake on their part...but they are certainly trying now.

    Only in the last 2-3 years have they started to really pour some money into chips for mobile and tablets. As others have said on here its really comes down to who has the best transisitor in the end....and that is Intel. Nobody else is even close to having this tri-gate technology and it will vault them ahead of ARM in power consumption and speed when the 14nm roll out in 2014.
    Sep 11, 2012. 03:54 PM | Likes Like |Link to Comment
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