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  • Corning (GLW +2.9%) opens higher on an upgrade to Buy from Goldman. The firm sees Corning, which trades below book value, delivering positive EPS growth (on a Y/Y basis) for the first time in two years in Q4 thanks to stabilizing LCD glass fundamentals (the result of supply controls). It also expects the LCD business' share of net income to fall to 74% in 2013 from 96% in '09, and Corning''s FCF yield to grow to 6%. The demand environment for LCD TVs has been anything but pretty. (previous[View news story]
    Private registered investment advisor. Over 30 years experience. CFA
    Sep 19, 2012. 11:50 AM | Likes Like |Link to Comment
  • Buying Intel At $23: Like Buying Coca-Cola At $23?  [View article]
    Over night and with herd like instinct INTC has been given over to the status of an "old" tech dinosaur. As a value investor I'm reminded of a time tested benchmark: "margin of safety". At this price INTC epitomizes safety first. All of the worries about INTC now being behind the curve technologically undoubtedly have some validity. Nonetheless, at this price there is an inherent "margin of safety" that keeps an investor from losing first while he waits upon positive change in fundamentals. The present dividend provides a yield of 4.5% at 20. That's pretty much the floor as I see. But, that is probably a far too simple a concept for some of techies.
    Sep 19, 2012. 11:30 AM | Likes Like |Link to Comment
  • Warning Signs Suggest Market Headed for Another Collapse  [View article]
    ANDY , your analysis is certainly a cause for concern for anyone managing money. However, I'm not a technician. I 've managed funds on a fundamental basis since 1970 and naturally have seen practically everything imaginable in terms of economic and market cycles. I have always felt that my job was to assess the risk/return equation for my clients to make an "informed" judgement about the "unknowns." The problem currently is that the unknowns are as "unknowable" as they have ever been. Bernake is correct: the economy faces an "unusually uncertain" set of circumstances. The dichotomy between the positives and negatives is extreme. Equity valuations are srceaming that they are the only asset class worth owning. But, economic trends suggest that "macro" factors ( domestic or international) can or will overwhelm everthing else from time to time. Therefore, I'm holding larger cash balances and hedging more than I normally would when valuation is so attractive.
    Aug 2, 2010. 11:03 AM | 10 Likes Like |Link to Comment