Corning Inc (GLW)

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.

This is a large cap. He tends to go for smaller. He bought it and management turned the company around. He views it as industrial rather than high tech, despite their glass for handhelds. It might even be in play. Have about 2000 patents.

Has a model price of $31.69, and 85% upside. They just need to establish some good earnings and that there is a confidence level in their earnings. If the CEO can simplify the company and give us a good level of confidence on their earnings, the stock will go substantially higher.

They do physical fibre optics. If you want something growthier, you could look at JDS Uniphase (JDSU-Q) that makes the components and test equipment or Exfo (EXF-T) that is a leader in test equipment globally. They haven’t done as well as Corning, but he expects them to do better over the next 3-4 years. This one is a fine stock to hold and has a good management team. Have technological leadership.

(Market Call Minute) Sell post the announcement of that acquisition with Samsung.

Fairly mature business. Their recent deal is highly accretive, but their mix of revenues is even more mature. He thinks that this company does not pass his growth criteria.

Makes fiber, solar, medical products and LCD+phone screens. Bottomed and doing better. Raise dividend three times in the last year.

This keeps popping up but it s very commodity business and there are a lot of competitors. If it fell with the market it could be a good opportunity but he is not looking at it right now. It is too volatile.

Difficulty here is that their products continue to get commoditized. They have a headwind, which is that the price of their product continues to fall. Volumes are rising. Growth is low.

Had bought this as a deep value US company. Primarily known for its Gorilla glass, which is used virtually in everything. Very well run company. Terrific balance sheet. Pays a good dividend. His target is $18-$20. Could be a takeover target because of all of its patents.

LCD TV market is recovering. Also, put a lot of glass into solar energy equipment. Also, big in telecommunications. As fibre to the home grows, they are probably the biggest player in this. All of their businesses have been doing iffy but are doing better. Strong balance sheet and has increased its dividends 3 times in the past 18 months. Yield of 2.85%.

Has always been challenged because it is commoditized. They continue to produce more volume and better products but, at the end of the day, if the price of your product continually falls it is just a brutal wind in your face.

Had a phenomenal run, a stock he likes, very high and he would have trouble chasing it unless it fell back to its break-out area.

Their big business is glass for television sets, phones and they still make fibre-optic cable. Incredibly cheap. Never recovered from the DOT COM period although amazingly transitioned into high end glass which is definitely a growth business as screens get larger and larger and the world shifts to smart phones. Margins are improving. This will be a double digits earnings story for the next few years.

(A Top Pick April 12/12. Up 3.58%.) Average TV in houses is growing larger. Introducing a new black screen technology, which used to be used by fighter pilots. Last year they acquired a big laboratory asset which will be accretive to earnings. Raised its dividend 3 times in the last 18 months. Has also been buying back shares.