3D television next for Corning

Who wins with the rollout of 3D television? Speciality glass maker Corning is at the top of my list.

By Jamie Dlugosch Mar 17, 2010 12:13PM

Investors would be wise to pay attention to developments in 3D technology as it makes its way inevitably into consumers' homes.

 

What some might see as a gimmick now may very well be the next big thing that can line investor pockets with huge profits.

 

The announcement by electronic giants Sony and Samsung that they are ramping up for bigger sales of 3D televisions is an important sign of what's to come.

 

My favorite way to play this important development is with specialty glass maker Corning (GLW).

 

The most previous innovation in television, the flat screen, triggered a massive rally in shares of Corning that began 8 years ago in late 2002.

 

I remember the time vividly because I recommended Corning when shares were trading for cents on the dollar. At that time the company was struggling from the overexpansion of fiber-optic cable and debt that threatened the solvency of this long time innovator.

 

 

I liked the company because that ability to innovate and felt strongly that the company would survive and ultimately thrive.

 

It was one of the best recommendations I ever made.

 

Shares of Corning did indeed survive and investors at prices below a dollar saw shares soar to nearly $30 per share a short 4 years later in 2006. Fueling that appreciation was the growth and explosion of flat panel display technology and a boom in housing.

 

Like most companies Corning has struggled over the last two years with the collapse in housing, a deep recession and a global economic slow-down. At $18 per share Corning trades about $10 less than the $28 high reached in late 2008.

 

The discount in price provides an opportunity for investors to participate in the stock in advance of the 3D wave that is on its way.

 

I can appreciate why some may be skeptical of 3D, but I am quite comfortable in stating that these televisions will penetrate the market by significantly more than the 10% early forecast from the manufacturers.

 

It really is a game changer and the viewing experienced is enhanced in such a way to merit the investment in hardware. As for the glasses, I too thought they would be intrusive to the experience.

 

They are not.

 

I look entirely forward to viewing entertainment in my home in this way. As a sport fanatic I cannot think of anything more exciting.

 

Even if I am wrong Corning is attractive from a valuation standpoint. If I am right, I could see Corning tripling in value from current prices in the next few years.

 

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