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Update: Corning Cleaning House At Dow Corning Before A Divestiture?
- Dow Corning announced its decision to close a manufacturing plant and reduce by about $1.3 billion its contribution to a fund to pay out claims arising from lawsuits.
- These actions by Dow Corning, and, as such, its owners DOW and GLW, are a likely prelude to GLW divesting its share of the joint venture.
- The CEO of Dow Chemical previously indicated that GLW may be about to sell its half of the Dow Corning multi-billion dollar joint venture.
- The proceeds from the sale of GLW's share of the Dow Corning joint venture may be used for an acquisition or an increased share buyback.
- We did not anticipate this specific announcement, but did recognize that GLW was interested in divesting its share of Dow Corning.
Update: Corning Acquires Leading Provider Of Fiber-Optic And Copper Cable/ComponentsWillow Street Investments • Tue, Dec. 16
- This acquisition by GLW is the latest in a series of acquisitions by the company in the last year.
- We see more acquisitions ahead as the company strengthens each of their divisions before an even more significant move by the company.
- The company recently increased their dividend by 20 percent and instituted a $1.5 billion share buy back.
- We did not anticipate this specific acquisition, but did recognize that the company is strategically strengthening each of the divisions through acquisitions.
Best S&P 500 Tech Stocks According To Piotroski Principles: Corning
- Ranking the top twenty S&P 500 tech stocks, according to principles of the well-known investor Joseph Piotroski.
- Explanation and back-testing of the "All-Stars: Piotroski" ranking system.
- Highlights and a buy recommendation for the third-ranked stock of the system; Corning Inc.
Corning: Multiple Company Announcements May Push Stock Over $25 Early In 2015
- A recent strong increase in global shipments of liquid crystal display televisions will likely ensure a strong performance in the company’s display technologies division.
- The company’s recent acquisition of the Samsung's fiber optics business will strengthen position in Asian economies and take advantage of growing demand for fiber optic cables and products.
- The recent announcement of Gorilla Glass 4 will continue to capitalize on growth opportunities in the consumer electronics market and the success of Gorilla Glass 3.
- The company has been expanding manufacturing capacity for its emissions products as demand increases for such products due to strict global emissions and air quality standards.
- The company continues to work on a major unannounced initiative for its life sciences division which it believes could become a large opportunity for the company.
- Corning hiked the dividend to an attractive 2.3%.
- Corning authorized another $1.5 billion share buybacks that adds to a history of value creation over the past three years.
- Corning leads a group of old-school technology stocks with high yields.
- Corning shares have been on the comeback trail for two years.
- The purchase of Samsung's fiber optics assets gives Corning more stability.
- This is moving from a trading stock to an investing stock. Look for an entry point.
Corning: Gorilla Glass 4 Can Cater To Demand For Damage Resistant, Thinner Displays
- Corning has introduced Gorilla Glass 4, which was a significant improvement over Gorilla Glass 3 and also most other competing cover glass in the market.
- We believe the glass will ensure Corning remains the market leader in the segment by catering to the growing demand for thinner and more damage-resistant devices.
- Gorilla Glass 4 could not have been launched at a better time, as smartphone manufacturers are increasingly demanding stronger cover glass.
Corning's Cash-Rich Balance Sheet And Impressive Growth Outlook Leads To Significant Upside Potential
- Corning shares trade at only 13 times forward earnings, despite a future projected earnings growth rate of 13.5%.
- The company possesses a strong balance sheet with nearly $5 per share in cash and its potential sale of Dow Corning would likely further improve its cash position.
- While the firm does face competitive pressures, at their current price its shares appear significantly undervalued with nearly 50% upside potential, according to a DRAG analysis.
Corning: About To Divest Its Share Of Dow Corning And Then Enhance Shareholder Value?
- The CEO of Dow Chemical indicated that GLW may be about to sell its half of the Dow-Corning multibillion dollar joint venture.
- The proceeds from the sale of GLW’s share of the Dow Corning joint venture may be used for an acquisition or a large scale share buyback.
- Continuing failure by GLW management to maximize shareholder value may result in large investors calling for a break-up of GLW or a company taking over GLW.
- In the next few months, the company is likely to increase its dividend and initiate a new share buyback program.
Optical Communications Segment Will Drive Future Growth For Corning
- The optical communications segment is one of the key business segments of the company.
- There is a major opportunity available for the segment from Australia, and it should allow Corning to grow its revenues from this region over the next few years.
- Consistent innovation in the segment should allow Corning to maintain an advantage over its competition.
- In addition to the revenue growth measures, the company is also trying to bring down the costs from the segment, which should enhance its margins.
Update: Corning Exceeds Earnings Estimates, Shareholder Friendly Actions Are Next
- The company’s earnings exceeded earnings estimates, as certain divisions outperformed others.
- The company’s board of directors agreed to accelerate their evaluation of future share repurchases and dividend increases.
- The increased use of GLW's Gorilla Glass product in the automotive industry may be the next growth driver for the company.
- We did not anticipate the exceeding of earnings estimates, but did anticipate the potential for increased share buybacks and a dividend increase.
Corning - Appeal Lures, Yet I Am Not Pulling The Trigger
- Corning posts solid third quarter results, beating on both the topline and bottom line results.
- At the same time the company warns about LCD volumes and prices in the upcoming quarter.
- I like the valuation, strong balance sheet and historical profitability, but hate the reliance on some key manufacturers and lousy stock track record of the stock.
- Corning reported 3Q EPS of $0.40, beating estimates by $0.03.
- Core sales increased 26% Y/Y to $2,649 million and core earnings increased 17% Y/Y to $568 million.
- After Corning reported somewhat disappointing 2Q results, the stock dropped 10% and my article called for investors to establish a long-term position on the pullback.
- Corning posted exceptional revenue growth of 23% and operating income growth of 41% year over year for Q3.
- Glass substrates for LCD displays remain Corning's most important business, which was never threatened by the sapphire display mirage.
- With future growth in Displays, Gorilla Glass, and optical fiber, Corning is poised for exceptional growth.
Corning: A Pre-Earnings Buy, As Company Has Options To Enhance Shareholder Value
- The company's shares have sold off in the last several months presenting potential investors with a better entry point.
- The company announced a joint development agreement with Maxwell Technologies to advance capacitive energy storage technology.
- Innovation for Gorilla Glass with respect to healthcare applications will boost GLW's performance in the intermediate term.
- Continuing failure by GLW management to maximize shareholder value may result in large investors calling for a break-up of GLW or in a company taking over GLW.
- The company’s shares yield over 2 percent in addition to substantial share buy backs.
Mr. Market Is Offering Corning At A Low, Low Price
- Benjamin Graham's "Mr. Market" is irrationally under valuing Corning stock.
- Corning's low P/B ratio and high free cash flow yield make a strong case that the stock is under valued.
- An investor who buys Corning and holds for the long run will enjoy exceptional returns.
Corning Sell-Off Creates An Attractive Buying Opportunity
- Core Net Sales were up 28% to $2.58 billion YOY, compared to $2.02 billion for the second quarter of 2013.
- Display Technologies sales were $1.1 billion, up 62% from $670 million YOY. LCD glass volume grew in the low teens percentage sequentially and was higher than anticipated.
- The stock is up more than 25% in the last year. When you factor in the current valuation, the stock still has about 32.1% upside remaining.
- GT Advanced Technologies blindsided shareholders Monday by declaring bankruptcy, triggered by a broken relationship with Apple.
- This was an unexpected and significant positive catalyst for Corning, a competitor that supplies Gorilla Glass to the mobile industry.
- Corning was already a cheap stock in the context of the overall market. The demise of its competitor is just one more reason to consider the stock for purchase.
Corning: Some Warts, But Ultimately A $30 Stock Within 5 Years
- Corning has recently gotten serious about a stock buyback program, taking off 100 million shares, or about 7% of company stock, within the past twelve months.
- The optical fiber/cable division, which accounts for 10% of Corning's business, has been growing at north of 20% and ought to spike the company's stock price.
- Corning does come with some warts in terms of past record, as its current profits are still lower than 2007 levels.
- Corning primarily manufactures glass, ceramics and related items but is also known for producing substrates and filters that are used in catalytic converters.
- The company is also expecting to benefit from the use of Gorilla Glass in automobiles. Gorilla Glass, a protective scratch resistant glass, is primarily used in consumer appliances and devices.
- Once this market opens up, even a 5% market share would mean a 30% increase in sales.
- As long as automobile sales keep increasing, emission standards keep getting revised and car manufacturers continue being innovative with their use of Gorilla Glass, the future for Corning looks bright.
Oct. 22, 2013, 4:29 PM
- Corning (GLW) is taking full control of the Samsung Corning LCD glass JV, currently 43%-owned by Samsung Display. Samsung, meanwhile, is buying $2.3B worth of Corning convertible preferred shares via two transactions.
- The deal will give Samsung Display a 7.4% stake in Corning on an as-converted basis. It also features a new display glass supply agreement between the firms that lasts until 2023, and a strengthening of their R&D collaboration.
- The transactions are expected to close in Q1 2014. Corning promises "immediate earnings accretion" and cost synergies.
- Separately, Corning has announced a new $2B buyback, good for repurchasing 7% of outstanding shares at current levels.
- The company also says it expects to report Q3 revenue of $2.1B (+10% Y/Y) and EPS of $0.33 vs. a consensus of $2.1B and $0.32. Q4 numbers are expected to be lower Q/Q, due to seasonality and a major Y/Y drop in optical fiber sales. The consensus is for revenue of $2.11B and EPS of $0.33.
- Full Q3 results arrive on Oct. 30.
- GLW +20.7% AH. CC at 4:30PM ET.
Oct. 11, 2013, 9:23 AM
- Intel (INTC) has been cut to Neutral, and Nvidia (NVDA) to Underperform, by Macquarie. Intel's Q3 report arrives on Tuesday. Intel -0.6% premarket, Nvidia -0.9%.
- Micron (MU) has been cut to Underperform by Wells Fargo following its FQ4 results (I, II) and FQ1 pricing guidance. Shares -2.1%.
- Synaptics (SYNA) has been cut to Neutral by JPMorgan two days after announcing the Validity Sensors deal and forecasting strong FQ1 sales. Shares -1.5%.
- Corning (GLW) has been cut to Neutral by Piper. Shares -1%.
- Iron Mountain (IRM) has been cut to Underweight by Barclays a day after announcing CFO Brian McKeon is leaving. Shares -2.2%.
- LG Display (LPL) has been upgraded to Buy by Citi.
- Diodes (DIOD) has been upgraded to Buy by Longbow.
Sep. 18, 2013, 11:10 AM
- In light of the iPhone 5S' inclusion of a sapphire home button (with an embedded fingerprint sensor), Canaccord predicts sapphire prices will rise further, something that stands to benefit equipment supplier GT Advanced (GTAT +8.2%) and wafer maker Rubicon (RBCN +5.3%).
- Meanwhile, Digitimes reports the upcoming 5th-gen iPad and retina iPad Mini will also have sapphire home buttons (not surprising), and (more intriguingly) states Apple will "possibly" use a sapphire touch screen in a 2014 iPhone (presumably the iPhone 6).
- Digitimes, which has been hit-and-miss with product feature rumors, notes Apple recently submitted a patent filing for sapphire layer lamination. However, it also observes the cost of sapphire cover glass remains up to 5x that of existing solutions, such as Corning's (GLW +1.9%) Gorilla Glass.
- GT Advanced has been promising the development of sapphire furnaces able to make larger crystals will narrow the pricing gap between sapphire and Gorilla Glass.
- Sapphire glass is thinner and reportedly 3x stronger/scratch-resistant than Gorilla Glass. However, Corning has been improving the scratch-resistance of the latter, and has criticized sapphire's weight and optical qualities.
Aug. 22, 2013, 1:43 PM
- Quartz reports Apple (AAPL -0.7%) is talking with ESPN, HBO, and Viacom, among others, about deals to "provide content for a television set that would emphasize apps over cable TV."
- Sources think Apple could be planning to create its own Web-based TV service (Intel and Sony have similar plans), but also caution "everybody is talking with everybody." They add Apple has "concluded that it doesn’t need all, even most, content providers on board before it can release a TV set that people would buy."
- Past reports indicated Apple has tried to license TV channels for a la carte distribution, only to be stymied by network owners scared of alienating pay-TV providers and upending a profitable status quo.
- Yesterday, Bloomberg reported ESPN is thinking of licensing its channels to Web TV providers, but apparently for packages similar to those offered by pay-TV clients.
- Taiwan's Economic Daily News recently reported Apple is working with Foxconn and Corning (GLW +0.1%) on creating 55" and 60" TV sets (translation) sporting edge-to-edge Gorilla Glass panels.
- A revamped Apple TV set-top could arrive later this year, as might Time Warner Cable channel support.
Aug. 20, 2013, 11:09 AM
- Citi notes prices for large-sized TV panels are down another ~$2, or ~1%, in August, and that DisplaySearch expects "continued price pressures during the seasonal build period as demand remains uncertain."
- The firm also observes soft PC demand is affecting TV panel prices (by hurting the supply/demand balance), and that tablet panel prices are down 1%-5% due to rising supply.
- With over 70% of Corning's (GLW -1.1%) net income stemming from display glass sales, Citi is reiterating a Neutral on the company, even though it considers its dividend, cash generation, R&D, and manufacturing abilities "impressive."
- Soft TV panel prices also stand to impact AU Optronics (AUO +0.7%) and LG Display (LPL -0.6%).
- Corning's Display Technologies unit posted 21% Y/Y rev. growth in Q2. Q3 LCD glass volumes were forecast to be up slightly Q/Q, and price declines on par with Q2.
- LCD driver IC vendor Himax recently forecast its Q3 large-panel driver sales will be "sluggish" thanks to soft TV/laptop demand and the end of China's TV subsidy program.
Jul. 30, 2013, 9:33 AM
- Corning's (GLW -1%) Q3 LCD glass volumes are expected to be up slightly Q/Q, and price declines steady with Q2.
- Specialty Materials (inc. Gorilla Glass) sales are expected to grow 10% Q/Q.
- Telecom sales seen growing 20% Y/Y, environmental technologies "up slightly," Life Sciences (boosted by acquisition) +40%-45%
- Q2 Display Technologies sales (inc. LCD TV glass) +21% Y/Y, up from +7% in Q1. LCD glass price declines smaller than Q1's, as expected. Segment earnings +11%.
- Telecom sales +8% (-7% in Q1), Earnings +62% (aided by cost reductions).
- Specialty Materials (inc. Gorilla Glass) +2% Y/Y (-10% in Q1). Earnings +33%.
- Environmental Technologies -8% Y/Y (-13% in Q1), Life Sciences +35%.
- Dow Corning (silicone unit) earnings -19% Y/Y, expected to fall 50% Q/Q in Q3.
- Q2 gross margin was 43%, flat Q/Q and +100 bps Y/Y
- $242M spent on buybacks.
- SG&A spend -7% Y/Y, R&D -3% thanks to cost cuts.
- Q2 results, PR
Jul. 30, 2013, 7:38 AM
Jul. 30, 2013, 12:05 AM
- ACI, ADS, AET, ARQL, AUDC, BLC, BP, BYD, CIE, CMI, COH, CVLT, DB, DDD, DIN, DISCA, DSX, ECL, ESV, ETR, EZPW, FIS, GLW, GNRC, GT, GTI, GTLS, HCP, HEP, HRS, HW, IPGP, JBLU, KLIC, MCGC, MDC, MLM, MRK, MSO, MWV, NEE, NLSN, NOV, NTLS, NYX, ODP, OSK, OXY, PBI, PEG, PES, PFE, ROK, S, SAN, SNH, TRI, TRW, UBS, UDR, VSH, WLK, WM, WU, XYL
Jul. 29, 2013, 7:08 PM
- The new Nexus 7 is quickly creating believers. Reviewers at The Verge, Engadget, and Mashable all like the Google (GOOG) tablet's 1920x1200 display, quad-core CPU, and thin/light form factor. Some complaints are registered about the 7's large bezels and (relative to the iPad) tablet app ecosystem.
- Chromecast reviews are just as good. The Verge's Nilay Patel (9.0 out of 10) is more impressed with the $35 HDMI stick's tab casting feature, which allows the contents of any browser tab to be streamed, than its Netflix/YouTube support. "Think of it as a wireless display cable for your laptop and you’ll get the potential immediately." Comparing Chromecast to Apple TV, TechCrunch's Greg Kumparak praises the device's cross-platform support.
- Former Android and Me writer Taylor Wimberly reports the Moto X will use a special kind of Gorilla Glass (GLW), known as Magic Glass, that wraps around a phone's sides.
Jul. 29, 2013, 5:30 PM
- ACI, ADS, AET, ARQL, AUDC, BLC, BP, BYD, CIE, CMI, COH, CVLT, DB, DDD,DIN, DISCA, DSX, ECL, ESV, ETR, EZPW, FIS, GLW, GNRC, GT, GTI, GTLS, HCP, HEP, HRS, HW, IPGP, JBLU, KLIC, MCGC, MDC, MLM, MRK, MSO, MWV, NEE, NLSN,NOV, NTLS, NYX, ODP, OSK, OXY, PBI, PEG, PES, PFE, ROK, S, SAN,SNH, TRI, TRW, UBS, UDR, VSH, WLK, WM, WU, X, XYL
Jul. 29, 2013, 5:21 PM
- Corning (GLW) is launching Gorilla Glass NBT, a version of its scratch/damage-resistant cover glass meant specifically for touch notebooks.
- The company sees a high rate of consumer complaints about notebook scratches, the high cost of notebook displays, and the additional "physical interaction" that comes with touchscreen boosting NBT's appeal.
- Dell is an early customer, promising NBT will be used in hardware arriving this fall. Corning expects the glass will be featured in "several notebook product models by leading global brands later this year."
- Some notebook OEMs have already embraced other types of Gorilla Glass.
- Previous: Corning promotes Gorilla Glass to automakers.
Jul. 17, 2013, 12:34 PMThe iPhone 5S (AAPL +0.1%) will feature an "indestructible Liquidmetal case," thinks BGR's Jonathan S. Geller after analyzing previously-leaked SIM tray pictures and finding similarities with Vertu luxury phones that used the material. Liquidmetal (LQMT.OB +68.5%) shares have soared on the pink sheets thanks to the report. Geller also thinks (but doesn't elaborate as to why) the 5S might use sapphire cover glass; if true, that's a positive for GT Advanced (GTAT +0.4%), and an incremental negative for Gorilla Glass maker Corning (GLW -0.8%). Separately (take this one with a big spoonful of salt), Taiwan's Commercial Times reports the 5S may be delayed until year's end in order to support a 4.3" display. | 20 Comments
Jul. 9, 2013, 6:40 PMChinese LCD panel shipments are expected to fall 5% Y/Y in Q3 to 13M-13.3M, "market observers" tell Digitimes. The government's recent decision to end TV subsidies is seen taking a toll in a market that has been a bright spot for an industry that hasn't had many lately. Yesterday, Digitimes reported 42/50/55-inch TV panel prices are expected to fall 2% in 1H July thanks to Chinese weakness. Corning (GLW), AU Optronics (AUO), and LG Display (LPL) are among the companies that could be affected. Some of these concerns have arguably been priced in since May. | Comment!
Jun. 19, 2013, 5:30 PM
Jun. 12, 2013, 2:55 PMWill automakers embrace Gorilla Glass? Corning (GLW) exec Jeffrey Evenson argues they should, claiming Gorilla Glass use could improve a car's fuel economy by lowering its weight and center of mass, and would also make vehicles quieter inside. He adds at least one high-end automaker is expected to begin making a car sporting Gorilla Glass within the next year. Also: Evenson expects Corning's antimicrobial glass (has healthcare and display applications) to be certified by the EPA within a few months, and sees Corning's Willow Glass enabling "hundreds of new products," from flexible displays to chip insulation layers. | 4 Comments
Jun. 6, 2013, 2:47 PMGlass demand is expected to grow in the low- to mid-single-digit range in 2013, says Corning (GLW -0.1%) at Computex. The company stated during its Q1 call its sees retail display glass demand (measured in sq. feet) growing in the mid- to high-single digits this year, with LCD TV and mobile growth partly offset by PC weakness. Talking up Gorilla Glass, Corning states ~1.5B devices now use the cover glass, and that about 1/3 of customers plan to use Gorilla Glass 3; Samsung and HTC are using it in smartphones. (Asus Zenbook Infinity) | Comment!
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