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Why I Own Corning

The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor and analyst Austin Smith discusses topics across the investing world.

In today's edition, Austin talks about one of his favorite holdings, Corning. The company is dirt cheap today, trading for less than seven times cash flow. Not only that , but it trades for book value, and has a forward P/E of nine (the video mistakenly reports a forward P/E of seven). This may make it seem like a boring no-growth value play, but Corning has growth, too! Its display technology division controls more than 50% of the glass panel market. While it may not have had the success in TVs that it had hoped, Corning is still positioned to grow with the mobile device boom, which is showing no signs of slowing down. Bake in its great existing supplier relationship, and you've got a great company for the next few years at least.

One of those valuable supplier relationships is with Apple. That's been a big win for the company, and it isn't the only one. You can read about "3 Hidden Winners of the iPhone, iPad, and Android Revolution" in our special free report. It's yours, totally free, today. Click here to learn more.

Austin Smith owns shares of Corning. The Motley Fool owns shares of Apple and Corning. Motley Fool newsletter services recommend Apple, Corning, and 3M. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (5) | Recommend This Article (7)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 16, 2012, at 1:04 PM, philippalmer wrote:

    True, by its current standards, it's cheap. But I think for its future earnings and growth targets, this company has been under a recent fire sale. I am scooping up shares as fast as I can get them, writing puts to maybe get them cheaper, (but safe income in my opinion), and collecting a nice diviidend along the way.


  • Report this Comment On April 16, 2012, at 1:11 PM, GW1000 wrote:

    Which Fool service owns Corning?

  • Report this Comment On April 16, 2012, at 1:46 PM, morp79 wrote:


  • Report this Comment On April 18, 2012, at 5:49 PM, Sunny7039 wrote:

    Is the PEG ratio that is generally reported accurate? Well, I cringe when I use the word "accurate," since we are dealing with a prognostication, but . . . the number I'm finding (well over 7.5) is disturbing. I would hesitate to buy a stock with a ratio over 3, and that's a real limit. Is there some countervailing reason to ignore it in this case -- if it is indeed "accurate," I mean?

  • Report this Comment On April 18, 2012, at 5:53 PM, Sunny7039 wrote:

    Also, why not wait for MMM to correct instead?

    I'm missing something here, maybe. I want to like Corning, it has a long history.

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