Editor's note: This article is a stock pitch made by a member on CAPS, The Motley Fool's free investing community. The pitch is published UNEDITED and is the opinion of the CAPS member whose pitch it is, in this case: ikkyu2.

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Company Corning (NYSE: GLW)
Submitted By ikkyu2
Member Rating 98.85
Submitted On 11/12/2011
Stock Price at Recommendation $15.58
Corning profile
Star Rating (out of 5)*****
HeadquartersCorning, N.Y.
IndustryDiversified electronics
Market Cap$22.8 billion
Industry Peers3M (NYSE: MMM)
Becton Dickinson (NYSE: BDX)
TE Connectivity (NYSE: TEL)

Sources: S&P Capital IQ, Yahoo! Finance, and Motley Fool CAPS

This Week's Pitch:

OK, let's see what [Corning] has got:

1) $24B market cap, $6B in current assets, $4B in debt. Back out the net cash and trailing P/E is about 6.5.

2) 30% sales growth y-o-y for the last 2 years, although sales took a nasty dip in 2008 so the subsequent comps were easier. Still a nice 20% increase in 2010 sales over 2007 sales; and margins slightly improving over the whole time as well.

3) Management expects double digit profit growth to continue over the next 2 years. CEO and CFO have been with the company about 3 decades each, and are buying stock at $14-ish.

4) This quarter, raised dividend (now about 2% yield) and authorized stock buyback around $13.50. Price is now $15.19.

5) Inventories shrinking as we head into a holiday season that might be a good one.

6) Best-in-breed when it comes to specialty glasses of all kinds. Household word due to their Visions cookware; also make flatpanel TV screens, smartphone screens, etc. Competition has to explain why Corning's product is too expensive or isn't as good in every case; and in some cases (i.e. iPhone 4 glass, which isn't Gorilla Glass) competition is clearly inferior. Corning has set the standard in glass for nearly a century.

I think we're looking at a pretty basic discounted cyclical value play. Anyone with a long term investment horizon ought to be happy to get this company at this price.

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