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Logical Thought
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My name is Mark B. Spiegel and I'm the Managing Member of Stanphyl Capital Management LLC. I can be reached at: mark (at) stanphylcap (dot) com. My Twitter feed is @markbspiegel
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Stanphyl Capital Management LLC
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I don't have a blog, but here's a link to a WSJ article regarding my thoughts on the "flash crash"
  • I Bought Some GLW Yesterday @ $11.15 1 comment
    Jul 26, 2012 7:10 AM

    It's unusual for me to go "big cap" but the stock is now *so* cheap and has so much great IP. The company is on a $1.20/share EPS run-rate which looks close to "trough" earnings to me, as here are the figures for the last five years:

    2011: $1.77

    2010: $2.25

    2009: $1.28

    2008: $3.32

    2007: $1.34

    The company also has approximately $1.50/share in net cash after accounting for the repatriation tax burden. So if you deduct $1.50 from $11.15 you get a net cost of $9.65/share, which is only 8x run-rate earnings and again, those earnings seem close to "trough."

    Disclosure: I am long GLW.

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  • Logical Thought
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    Author’s reply » I sold all of this this morning in the $11.80s when USD/JPY definitively broke above the 80 level. While Corning has amazing IP and sells at a very low multiple of what I think would normally be trough earnings, last week's conference call highlighted how leveraged the company's earnings are to the yen (with a lower yen impacting those earnings severely when translated into dollars). As I'm extremely bearish on the yen and expect a major yen crash at some point (this isn't necessarily a short-term call, but it's definitely "a call"), I'd only want to own GLW cheaply enough to compensate for that risk, as management doesn't hedge any of that yen earnings exposure.
    1 Nov 2012, 01:43 PM Reply Like
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