Epiphany Investing

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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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3 Responses to “Adding Corning to Secular Trends Portfolio (GLW)”

  1. Philips Electronics Posts Weak Net Earnings; Corning to Lag (GLW) : Epiphany Investing
    October 13th, 2008 @ 9:39 am

    [...] is one of my few direct exposures to the consumer, so I am left hoping that the 60% share cut in 2008 represents a good risk/reward [...]

  2. Corning Earnings up 24%, But Consumer Weakness on the Horizon : Epiphany Investing
    October 29th, 2008 @ 5:18 pm

    [...] the company navigated the Tech Bubble bursting earlier in the decade. A Secular Trends Portfolio holding, Corning now has two opposing forces at work - strong secular growth in glass and fiber is up [...]

  3. Corning Drops 2009 Guidance; How Low Can This Go? (GLW) : Epiphany Investing
    November 20th, 2008 @ 7:41 pm

    [...] GLW shares are down over 18% since that day, about 10 points lower than the S&P 500. Today this Secular Trends Portfolio holding trades for less than book value. On Tuesday Corning dropped their guidance for 2009, which [...]

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