Epiphany Investing

Searching Out the Optimal Portfolio of “Revelation” Stocks

Adding Corning to Secular Trends Portfolio (GLW)

Posted on | September 18, 2008 Time: 3:28 pm |

I’ve been a fan of Corning ever since they were scraping along at the $3 level following the Great Glass Glut of 2000. They made it through that period of time by just a whisker, or a strand of fiber if mixing analogies is your thing (I will tend to do just that, so I’ll throw out a global apology in advance).

I originally did a breakup value analysis of Corning in early 2007, and came up with around $35 per share. The piece was originally posted on 24/7 Wall St here and was commented on by Eric Savitz at his always enjoyable Tech Trader Daily Blog.

More recently, I did a thorough overview of the company’s recent performance and prospects via my Investopedia Advisor commentary. Corning has been hit hard recently when they issued a profit warning based on….a new glut in glass. But this isn’t the present repeating the past; the supply channel should work itself out by the end of the year, and flat-panel TV and monitor growth should still top 25% in this most difficult of years for consumer products growth (unless you’re Apple).

I love shares at these mid-teens level, and even though I’m über-cautious of the U.S. consumer right now, I feel comfortable starting a 4% position with a 2.5% buy today.

Adding 1670 shares at $15 flat.

Ryan Barnes

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Category: Investing Philosophy, Secular Trends Portfolio
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