Corning Inc (GLW)

We are starting to see the US economy starting to strengthen, so there are replacement cycles on TVs, phones, cars, etc. Also, Europeans are banking on fibre optics. Very strong balance sheet. Progressively growing its dividend. Has had a decent run, but he sees more upside.

There are a few things that line up for this company. It has had a big call option on Apple (AAPL-Q) for a while in terms of iPhone 6, etc with its Gorilla Glass. One of its competitors, Sapphire Group, pulled out. Dividend quality and dividend coverage and Price to Book, compared to its peer group, is trading at a huge discount. Thinks there is a catch up in terms of the value proposition that the stock offers over the next 1-2 years. Dividend yield of 1.95%.

Sees lots of upside. Gorilla glass. iPhone 6 stayed with it. There is a replacement cycle in LCD TVs.

Reacted reasonably well to its earnings announcements. Stock had been weaker for the last 3-4 months on talk of Apple (AAPL-Q) gravitating more and more to Sapphire, but that didn't happen. That should be a boost for the company who makes the Gorilla glass that goes in the iPhone and iPad. Still relatively cheap at about 13X next year's earnings. Still ample growth here. Yield of 2%.

The recession deferred a lot of aging TV replacements, so there is going to start to be a replacement cycle in terms of new TVs. This will probably occurs 1^st in the US and then as the global economy broadens out, there will be opportunities in other parts of the globe. Also their main competitor for gorilla glass just declared bankruptcy so there should be higher or more stable prices. Very strong balance sheet. Yield of 2.15%.

(Top Pick Sep 3/13, Up 43.66%) Gorilla glass is only one part. They are big in fiber optics. LCD screens are doing well again as they don’t last as long as the old fashion ones did. Dividend grew 3 times in the last year.

(Top Pick Sep 3/13, Up 56.14%) It was out of favour when he recommended it. Liked their exposure to fiber optics and LCD screens. LCD TVs don’t last as long as the old tube TVs so you replace them sooner. We are entering a replacement cycle.

A very solid company. They make Gorrilla glass. One of his concerns is the Sapphire Surfaces, but he doesn’t think the Sapphire Surface is going to be in the iPhone as it is expensive.

Tough competition. Touch tablet is the growth area, but uses much less glass than TVs. She would take profits now.

There is a pull back on the glass side due to a consolidation on the wireless side in the US. They don’t want to commit to any capital spending. Long term this is a very good company and he likes the space. Probably a good entry point from a seasonality standpoint.

Stock has been on fire until the last week or so, when they reported their earnings and sales were a bit disappointing. They are in a number of businesses, but all the market seems to care about is a product called Gorilla Glass. There are worries that when Apple (AAPL-Q) comes out with its new iPhone, it will switch from Gorilla Glass to Sapphire Glass. The market is fixated on Gorilla Glass and ignores its other businesses, such as LCD screens, etc.

Did a deal last November and bought out the partnership with Samsung and got more flexibility. The difficulty is that they continually come back to a commoditized product. They are a better story than a year ago, however.

To a certain extent, the rise in the stock is reflecting the enthusiasm for growth stories in technology and obviously Gorilla Glass is one of the better ones. The stock is only where it was 3-4 years ago. It may not be a bad idea to take some profits if you have done well over the last year.

(Top Pick Feb 13/13, Up 57.84%) Supplies products that are needed. Balance sheet is fantastic. Raised dividend three times in the last 20 months. Year over year sales gains are propelling the stock. It will continue to do well.

Has a very, very strong balance sheet, such that it has raised its dividend 3 times in the last 18 months. Bought back $1.5 billion of its shares and have announced another share buyback. Now collapsing the joint venture with Samsung which ultimately leads to an additional $500 million of free cash flow. They are effectively swimming in capital. Ultimately, the display business is a little soft at the moment. US and European recoveries will mean new TV replacements.