John Mugarian has a conservative, fundamental approach to stock selection, while Jim Collins uses a more aggressive, momentum-based quantitative style. Despite the differing investment philosophies, both cite Corning as new buy recommendations. Here are their reviews.
(For more information on the advisors cited below, click on their photos.)
Corning (GLW NYSE) is the latest featured analyst's review from
Listed Insight. Says editor Jim
Collins , "Corning produces optical fiber and cable
and networking devices for the worldwide telecom industry. Its primary products
also include liquid-crystal display glass for flat-panel displays. It is introducing
production of larger sheets of glass, which are more efficient for display
manufacturers to use and command higher prices. The company expects LCD glass
revenues to grow close to 50% in 2004, driven by growth in notebook computers,
desktops, and LCD TV markets. The firm’s other primary market is environmental
technologies, which include ceramic substrates used in catalytic converters.
Corning has No. 1 worldwide market share in ceramic inserts. More stringent
diesel engine emissions regulations ahead will help drive future sales growth.
The tougher standards will have a meaningful impact in Europe, where diesel
autos are significantly more popular than in the US. In February, the company
announced NexCor, a new optical fiber for converged voice, video, and data
service networks (known as ‘triple play’ networks). For the quarter ended Dec.
2003, Corning reported earnings of $0.04 a share, which was $0.14 better than
the loss of $0.10 a share reported in the year-ago quarter. Revenues increased
11%. The shares have performed strongly after bottoming at $5.42 in April 2003.
The stock has since traded sharply higher following several strong earnings
reports. The company has an ‘A’ rating for accumulation and
distribution."
Adds John Mugarian, editor of
Investor Alert, "While I am cautious and waiting for
a pullback before adding to new positions, there are always stocks that are
so undervalued that no pullback is required before we snatch them up.
These kinds of stocks are a contrarian investor's dream. And one I've got my eye
on right now is Corning. While most investors are waiting for the recovery in
telecom before investing in Corning, the company just happens to be at the right
place at the right time. Recognizing the changes in technology, Corning is
slowly moving out of the conventional TV business and is shifting toward
flat-panel screens. In addition, the company is in a 50% joint venture with
Samsung-Corning Precision Glass, a business that has been booming for over a
year. And there’s another reason that investors are missing the boat. While the
flat-panel business is what's driving Corning 's earnings now, fiber optics is
on the comeback trail too. The company just signed a major deal with Verizon to
begin expanding the company's fiber optics network. A pickup in the economy will
attract more customers to DSL, and as demand increases, other telecoms will be
scrambling to expand their networks as well. Thus, Corning will not only benefit
from the flat-panel craze, but also the next wave of telecommunications
build-out. Apparently, I'm not the only one who agrees Corning 's future is
bright. Recently, company director Eugene Sit bought 25,000 shares at $12.56 a
share. Back in 2001, the stock traded as high as $69. With everything looking
up, I consider this stock an immediate buy for aggressive
investors."
