Jake Berzon

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    • Time to Start Nibbling on Corning
      On Nov 03 11:15 AM daltxfan wrote:

      > I am a big fan of Corning as well and have been holding their stocks
      > for a while.
      >
      > But as we all know, in last downturn, Corning stock hits a $1. Why
      > this time you think it can't go lower than $10?
      >

      I agree that this may not be the lowest bottom of this market and that stocks could head lower from here. I also agree that GLW may go lower with the market. However, you must also consider that in 2002, when it traded at a low of $1.1, GLW was a much different business than it is today, both in volume and in product diversity. For example, 6 years ago, LCD TVs, were barely a factor for glass substrate demand. Today, they account for half of it and this isn't going to go away! Going into the last bear market, Corning was a growth story and trading at exorbitant valuations. This time around, it is a classic value play. It's in a much better position from the point of view of debt and profitability, as well and look at it's tangible book value. Can its stock drop further? Sure. Will it go to $1? There are certainly people out there looking at the charts and thinking about it. From the fundamentals view point, it is highly unlikely, though.

      On Nov 03 11:56 AM JackaLoupe wrote:

      > How out-of-it do you have to be to characterize Corning--the inventor
      > of FiberOptics that rode that wave of cross-country (and ocean) laying
      > of cable a decade ago--as so-called "low tech" company about to go
      > out of business? He must be confusing the company with the stock--while,
      > moreover, remaining clueless over the rest of Corning's business.

      Try reading my blog more carefully. I characterized Corning as "Corning is an amazingly agile 157 year old company that most of us still remember as brand name housewares low tech company that during the last recession seemed destined to go out of business. Today's Corning is that no more, but a completely transformed high tech powerhouse, a leading maker of glass substrates used by the electronics industry and fiber optic equipment used by the telecommunications industry, with an important environmental technologies business, a profitable life sciences business, as well as additional small, but promising businesses."

      It is a former low tech cookware company. It brilliantly transformed itself into a high tech company. Following that transformation it lost money for almost 4 straight years and certainly in 2002 was looking destined to go out of business, trading as low as $1.1/share. So, what's your beef?
      Nov 10 10:12 am |Rating: 0 0 |Link to Comment |View article
    • Time to Start Nibbling on Corning
      You have valid criticisms. My contention is that the margin compression currently built into the stock price is much greater than reasonable. I expect Corning to handily beat its lowest 2009 earnings expectation of $1.30 and trade at a P/E of 12 or better once markets stabilize (i.e. at least 50% upside from my purchase price).

      On Nov 03 07:07 AM skwestorange wrote:

      > This article could be strengthened with a discussion of expectations
      > for revenue, earnings and and margins in the three businesses cited.
      > The qualitative discussion does not provide any objective support
      > for the contention that GLW is undervalued and could be bought here.
      > Further the article itself lays out the case for margin compression.
      Nov 03 08:22 am |Rating: +1 0 |Link to Comment |View article

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