phwting

From Corning's Conference Call: LCD Market Update

Corning is fairly valued according to Morning Star compared with S&P 500.
It's a steal with a peg of 1.1 vs 1.7 for the S&P500 in forward valuations.
quicktake.morningstar....;Symbol=GLW&st...
Since Corning is recovering from near death, 2005 ttm data is useless.
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1- Telecom is providing the cash for Corning's business. And it will gusher more cash once they reopen the shuttered fiber plant next year. The up-cycle is just starting to kick in so earnings should rocket per incremental revenue increase above break-even.
Corning is getting $241 million in fiber and cable products in Q3 and $64 million for fiber to the premise.

2- JCI, BWA,TRW,LEA. The point is the market for diesel emissions will grow to $1.2 billion-$1.3 billion by 2010, from less than $300 million in 2006.

3- Corning is inventing a lower cost way to test drugs. This points out the innovative ways Corning's R&D gets new business and markets. This is similar to the way the LCD glass business got started when optical fiber is all the rage. Am questing your assumption that onces LCD gets to 80% penetration, Corning's growth will slow down. Even in the computer monitor business at 80% penetration, AUO just said their growth in glass area is 40% yoy in their October 06 earnings call.

4- DowCorning illustrates the limited liability features of companies that Corning uses to survive. Please take a careful look at DowCorning since there is not much public data available.

My last point about FCF is you have to compute the earnings, growth etc for a similar period in time for a fast grower like Corning. You can't use trailing 2005 FCF and match it up with estimated 2010 growth rates. Since capital spending is the question here, a better estimate is operating cash flow for 2007-2010 to go with your estimated growth rate in 2007-2010.