Corning Hits a New Low. What Gives?

In the following video, Brenton and Austin discuss glassmaker Corning and the reasons for its recent 52-week low. Corning has grown in popularity because of its role in providing Gorilla Glass for a wide variety of smartphones and tablets, but growth rates in that segment haven't been too impressive lately. Management blames supply-chain uncertainties for some of the recent weakness, with a boost expected next quarter. For shareholders, that growth can't come soon enough, given the struggles the company is facing in its core LCD glass business and the pricing pressures it's experiencing.

Many investors thought they would ride Corning's dominant cover glass to massive returns. That hasn't played out yet, but the all-important back half of the year could offer some nice growth rates for investors to cling to. In this brand-new premium research report on Corning, our analyst walks through the business, as well as the key opportunities and risks facing it today. Click here to claim your copy, and receive a full year of updates as key events unfold.

Austin Smith and The Motley Fool own shares of Apple and Corning. Brenton Flynn has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Apple and Corning. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.


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  • Report this Comment On August 07, 2012, at 6:59 PM, drbldr wrote:

    What investors like about Corning is the fact that even through the downside of their cycle, they continue to make money. The tangible book value is incredibly strong, and it trades below a 10 p/e. With a slight dividend, there's a lot of stability in this company, even considering the pricing pressure they've felt over the past few quarters. They have the supply issues back in order, and the seasonality of the TV business is in their favor over the next 2 quarters. What other investors don't like about Corning is the fact that what they sell has truly become a commodity. Their business model is somewhat predictable, so there's little or no chance for significant appreciation over the short term. That said, anyone with a longer term outlook should love Corning. If Apple announces a TV anytime soon, Corning will shoot up instantly.

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