I have been investing in and observing GLW for years now. I think that if you want to build a good investor base it really helps to appeal to those who are looking for dividends as well and that it can be accomplished without hurting the company's growth and acquisition plans. I fear that Corning's management team tries to emulate CSCO who has acquired and acquired and grown revenues and go ahead an examine where they are over the last 10 years. Just a huge company that gives nothing back to the stock holders but is a stable place to keep your money like a CD without the FDIC insurance. Probably a great, safe place to work with nice stock options. (disclosure, I once made money on CSCO, $5 a share but I think back now, it was luck more than anything else, no sour grapes here).
Why not dedicate 25% of profit as a return to stock holders. Your cash reserves will still grow. Your R&D will still be well funded. You can increase glass manufacturing as necessary. Your market cap will increase, your institutional buyers will be less interested in trading your stock and more likely to hold it creating more of an upward pressure. And we will be making a statement to a small but significant amount of private small investors that this is a good stock to park some of your portfolio. To go long with.
I think that this strategy gets tons of positive play in the press and will help push the share price up. Despite some mb pundits dissing the idea of dividends, the other strategies over the past few years seemed to be holding the stock in place... It will probably take a change in the board or for their role models at CSCO to take a big fall for this to happen.
Have to keep bringing this one up. I am guessing that if this stock hovers where it is, taking hits on marginally related items like Best Buys failure to discount tvs in November, (but no analysis of where the tv business migrated to, in other words, the sky is falling, oh wait, maybe it is just a sunset for best buy), then maybe we will see a nice $1.00 per share one timer div though I prefer a predictable future return, that keeps enough for the company to keep growing, keeps the $6 Billion in the bank to bankroll hard times or new plants and products, small acquisitions, etc. as stated above at length... But I want this topic up there just on the odd chance that one of the members of the board of directors actually give a crap about the small investors that waste their time on the MB... For me, a $1 a share one timer would be a nice Holiday gift...
The shareholders would be best served if GLW execs screwed the Goldman Sacks execs and put all 6 billion they have in cash into an immediate buyback before year end! Then, when Goldman Sacks can't even find any shares to sell short they'd be totally screwed on their massive short position and everyone who has been holding millions upon millions of these shares over the course of more than a decade can start bidding this sucker up to the $50 level were it belongs!!! But GLW execs aren't smart enough to do that! They got their heads buried in lab reports and spreadsheets! LOL
Do you plan to submit a shareholder proposal to the next annual meeting asking for a higher dividend?
I have owned Corning for 27 years and will likely have stock for at least 10 more years, though will begin to sell as I approach retirement and shortly after. I believe I am better served by a stock buy-back than through dividends that I have to pay tax on now. Hence my opposition to higher dividends. I'd rather pay capital gains later than ordinary income taxes now.
Not trying to avoid any questions. I have about 15% of my portfolio in GLW shares right now. I hold most of my stocks for 3-5 years. I could sell GLW and make money. But I am a big believer in the potential of the products and the ability of the company to grow in value. I have outlined how I think this takes place. Some of my views may be now shared by the people that run GLW, according to some recent news and statements. So I will stick around to see if they change their approach a little. I believe that this company is diversified enough and has proven itself and that it deserves to trade at 15 PE AND pay out a 3% dividend.
That is where I think they should be. I will stick around for another year to see if it does.
Am I being clear enough for you?
Nothing comes out of thin air, including BS. GLW has 6 billion in cash due to profitable ventures and revenue from those enterprises. Companies pay out dividends, some like Verizon and ATT almost all the profits and that draws and then keeps investors in their company... but they are service providers and GLW is a manufacturer and has needs to retain profits but simply not all the profits.
I was waiting for the idiots to show up, took a little while.
But please let us know why Corning can't pay a reasonable and competitive dividend.
I asked this a while ago. Very Very stogy management. They could increase just a penny a quarter for a short while and try it out. This would be little risk to the cash hoard. By the way where are the new innovations and patents from the R & D? They've had the Gorilla in a cage for years. I haven't seen any patents or patent applications coming out for a long time. These guys are as exciting as a funeral. Maybe that's why they look and talk like undertakers on CNBC. The only glimmer of hope I see is that they have a young guy on Facebook promoting Gorilla glass, and they also twitter once in a while. One thing you can be sure of is that they don't spend any money of advertising. Please let me know when you see an ad for Corning.
It is hard to really keep track of Corning's R&D but I suspect that Corning files patents absolutely every month for either content, finished products or manufacturing innovations and processes. I would be surprised if their in house legal staff is less than 100 employees just for these purposes and protecting patents as well. It is great to have a huge portfolio and be able to take an old innovation out, modify it and bring it to market.
It is hard to really advertise, I mean if you are an OEM you are not selling to the consumer directly. But I agree, if they required every manufacturer to do something like Intel did with their label on every frigging computer back in the day "Intel Inside" and their funky funny national tv ads of people dancing around in their dust free manufacturing environment that would be so bloody on the spot. Gorilla Glass protecting what is inside. Guess what, no one else can make this patent protected glass and Corning could require every unit sold to state Corning gorilla glass and soon no other glass manufacturer would get any business... Well Intel went to town with that branding but it took some really over the top marketers to drive it...
Okay, then we just disagree. No hard feelings. It would be fun to run it forward both ways like ground hog day and see where we were in five years.
I think we actually had a respectful discussion... and on the GLW MB. Hah, anything can happen. But you notice, no one else joined in, especially the multiple personalities/schizoids that dwell on these boards. Have a good day and go check out ACTC.ob Advanced Cell Technology. My wife works in that industry (not in research though) and I am up to 50K shares (it's a penny stock so no big deal and I am not a pumper, but talk about a management team that can communicate) so do your own homework... So far they have removed the fable of three blind mice and have FDA approval to start working on us (people) next month... Pretty exciting stuff.
I think GLW execs are like many execs right now -- happy to have cash and happy to sit on it for a while until they gain better visibility going forward. I think China would love to buy an interest in companies as well as companies and there is a great opportunity to take advantage of that right now, that's why I think they can sell their stake in Dow-Corning, either to Dow or a Chinese consortium -- I think there are willing buyers out there right now. I also think the company that is sitting on the biggest hoard of cash is going to be the winner in the end -- not the company that makes shareholders happy, as much as that pains me to say so. As for the stock price, that is simply a reflection of the fact that shorts are willing to sell this at will -- nothing else! I'm not against you, I believe this stock deserves to be trading in the $50 level, but it just aint happening despite what I think! LOL
So I started asking this question in April of this year when we were about $20 and the answers were all about grow the sales. I still think that this post is a better view of what we need to do than most of the other posts on this board and deserves to be kept in play. Corning did mention the idea of giving some of the 6 billion back to shareholders. I would not mind a $1 a share about now, nice Holiday present. At the same time if we could pass on that one timer and start paying 15cent per quarter per share instead, that would still leave us with plenty of capital in reserve and 60% of next years income to add to the retained profits. This would result in a 3% dividend at $20 per share which is enough to attract more stable long term investors which drives the stock forward. Win win win, without MM's.
What do you think?
I think that share price is a measurement not an objective. Making changes to try to drive the stock price up is like playing tennis by watching the scoreboard. Detroit has done that for years and it isn't a winning strategy.
There is only ONE strategy that will move this stock higher!
Nothing else matters! PE ratio is bull, relationship between profit and stock price is bull, all the favorable PR that comes out right at a top is all bull.
It is simple -- the sellers of GLW stock have NO fear and they will continue to sell down EVERY pop. The stock can have its little gradual climb because they are still making way more money than the longs. They NEVER have to fear a sudden and drastic climb in the stock that will burn their short butts! They NEVER have to fear a 50% rise and then have to wait for five to ten years to recoup their losses. They are in the cat bird's seat and the buyers have been exhausted.
Mom and Pop can't afford the house let alone a new LCD TV. The only strategy that will work is if the Fed comes in and starts making massive buys of commonly held stock, especially during options expiration week, to burn those shorts and put the same fear of loss in their heads that is eternally etched into the heads of ALL retail investors. The shorts have done cooked the goose that laid their golden eggs and its not even Christmas yet!