it was quite interesting listening to the questions at the end of the session. There was NOTHING about the other 60% of the company. And that is where the real growth lie. And it is very profitable. But each is just a piece of that remaining 60% and simply gets ignored -- literally. Despite the contribution. Corning is managed like a growth company but valued as an income asset. THe problem is that the income is not distributed like an income asset (meaning high yielding). So you have the metrics for growth and the results for income -- and they aren't meshing.
Corning is a good company with good assets, but the blend of them is not getting the maximized value. There are more creative ways for Corning to realize the value for the owners of the company (shareholders) that to simply throw all the business units in to the same toy box. This needs toe be approached by Corning or it will be done for them by a private equity group. Cornings parts are worth MUCH more than the whole right now
"Corning is viewed as a glass company only".....
I've been saying this for YEARS...one trick pony is how GLW is viewed. Reality does NOT matter, it is about viewpoint of the market.
glw & gtat should have gotten together in a joint venture against apple...
that way both companies could leveage against apples black boot
apple is the demise of a lot of vendors...
that way they could control the price and amount of gorilla and sapp-hire thats let onto the market
that my friends would have apple by their seeds!!!
what were these 2 itiot companies even thinking???
gtat could have had glws r & d behind them
now they have apples black boot behind them
a couple of things jumped out at me. First, at the conclusion of the report the analysts were only interested in all things Gorilla and LCD. Nothing of the other 4 business units -- which were doing quite well by any accounting. So, no credit for the contributions of these units. Corning is viewed as a Glass company only. The other is that this was, to me, the right choice of quarters to announce a dividend increase. They are piling up cash like never before and using it to purchase stock. Returning cash to shareholders has repeatedly been stated as one of the 4 goals for this year. Talking about it and not addressing it has left shareholders anxious. Too, a higher dividend is a cushion for the stock value ---- which collapsed under the 'weight' of 40 cents
Come the next report, assuming we languish under $22, the stock will have a high - Low range of $16 - $22 with a 1.8% dividend ratio. Not the kind of numbers a company hitting successive records should have in a bull market like 2014. The market is skeptical and it spoke. Great results and not a lot to show for it --- so the market exited when there was no cake to eat.
Corning will be under pressure now to increase shareholder value now in the wake of this. Record profits and declining shareholder value is gong to create an angry base. The Dividend MUST go up --- and, if the other divisions are not going to "really" add value, then they should be sold to free up the cash. A spinoff or a takeover will become part of the future dialogue if this year ends like it is going. An inevitable direction given the direction
Just my 2 cents
how much more will corning drop when apple officially announces it is abandoning corning...Time for them to start buying Hyperions from GTAT...the sooner they do the smarter they will look in the long run..
JJJohnnyboy, I hear you but that's purely a guess and that guess could be right. However, the buy back is NOT going to benefit the shareholder to the degree that the hit hurt them - if this is how management thinks, it stinks. They didn't buy GTAT when they could have and the investing community is looking at GG as a loser, rightfully or wrongfully it doesn't matter, the stock price is what matters and perception does count. We now have a long haul back to where we were and the company better deliver at the Q3 report in October. This is a company whose share price s/b around $35 not 19-20, and I have been a 14-15 year holder of this equity.
Sentiment: Strong Buy
Only speculating; but how about cisco taking over GLW. provide fully intergrated networks, sell everything else
yes hobo I agree, but its because of the buy back program that they want the stock lower. and if that is the reason, I cant blame them and I do believe it is the reason.
I agree, the report was very good. Given the seasonal drop in tablet sales the company is doing well. What I said earlier in a message was that if we beat by a penny would we have gone up $2.05/sh, not likely - the hit was absolutely ludicrous and overdone. We need to look at and question Corning management.
Sentiment: Strong Buy
I agree with you c2r, however you should go easy on your bullish predictions. it opens you up to discounted
and short posters. I must say some of them have a point, but generally I agree with you.espec. on the buy back program, which I believe is the big dip we have gotten. I read the earnings and it does not warrant this pull back. in my op. it was a fairly good report. GL