Corning: Bargain in glass technology?
A director recently invested $1.9 milllion in shares of this specialty glass maker.
Since October, Corning (GLW) has been hurting due to the weak glass market, especially the sales of liquid crystal displays for televisions and computers.
But now the New York-based specialty glass and ceramic manufacturing is ready to explode upward. And it’s all due to Apple’s incredible demand for tablets used in its iPads.
Since its launch in 2010, Apple has sold 55 million units, and analysts expect iPad sales to exceed 325 million units by 2015.
Corning supplies the majority of Apple’s and other tablet manufacturers (Dell, Hewlett-Packard, etc.) with its Gorilla Glass. Sales of Gorilla Glass are the primary reason Corning saw revenues advance 19% last year to $7.9 billion.
Corning’s glass technology is also a feature on Apple’s iPhone as well as notebook computers and display devices.
Corning’s price is 30% off its previous high in October, but with 23% operating margins and a return on equity (ROE) of nearly 14%, the stock looks cheap.
It’s selling for only nine times expected earnings this year. It has $5.8 billion in cash, far above its long-term debt ($2.4 billion).
Director Gund Gordon smells a bargain, and recently bought 150,000 shares ($1.9 million worth) at $12.75 each.
Let’s join him and buy Corning at market and set a protective stop of $11.50 a share here. For those more adventuresome, consider buying the August $16 call options.
- Nokia: Major turnaround ahead?
- Global telecoms: Ericsson, Nippon
- Alcatel-Lucent (ALU): Acquisition target?
MORE ON MSN MONEY
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
The auto parts giant beats Wall Street expectations, while continuing to expand its stores in the U.S. and Mexico.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.