Misery: Will Corning Survive This Horrid Market?
This market is scarier than Kathy Bates in Stephen King's Misery.Take Corning (GLW), for example.
We put a hyperbullish $30 dollar price target on Corning roughly 4 weeks ago.
Since then, Corning (GLW) has gone nowhere but downtown.
The short to long term catalyst here is obviously the flat panel/LCD television boom.
Or should we say "was?"
What we didn't see coming was a retailing bust, two hurricanes, and sustained high energy costs.
If consumer spending ever comes back in vogue, you can bet the house that Wall Street will reawaken to Corning.
GLW is getting hammered for the same reason the broad averages are getting clobbered -- inflation worries and skyhigh gas prices.
Nevertheless, the facts remain as such: Corning (GLW) produces the highest quality substrate glass in the business.
Demand for flat panel glass is expected to triple over the next 5 years and Corning has the competition beat.
Since CEO Jim Houghton was asked to come out of retirement and steer the former fiber optic darling back to profitability, Corning has become the world leader in next generation glass substrates for liquid crystal displays.
We'll have to see what the Christmas numbers look like, but until then, Corning is still a buy.
That is, if you can muster enough patience to see it trade in this obnoxious $15-$18 range for a little while longer.
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