Corning Inc (GLW)

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.

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.