Tuesday, December 20, 2005

Out of the Telecom Coma: Corning

Circuit City (CC) had a blowout day on Monday after the company posted its first back-to-back quarterly profit in more than three years and beat analyst estimates.

Here's the kicker -- Circuit's management said they saw a huge spike in flat panel TV sales.

That means it's time to buy Corning (GLW) again.

We've been recommending Corning since August, when shares were trading at the $17-$19 range.

We are reiterating our $30 dollar price target on shares with a twelve month outlook.

Corning is the company that brought you Pyrex and now wants to redefine your living room experience.

The long term catalyst is the mushrooming flat panel/LCD business Corning is imbricated in.

NY-based Corning produces, hands down, the highest quality substrate LCD glass in the business.

Demand for flat panel glass is expected to triple over the next 5 years and Corning has the competition smoked to a crisp.

Since CEO Jim Houghton was asked to come out of retirement and steer the telco back to profitability, Corning has become the world leader in next generation glass substrates for liquid crystal displays.

Corning's strength is organic: shares remain stable meanwhile those of peers like Best Buy (BBY) -- who sell the myriad gizmos Corning's glass can be found in -- get thrown through the windshield.

Thomas Friedman was right: the world is flat -- and so is every television at your local Circuit City.

Corning -- by axing off debt, improving gross margins, and reinventing it's revenue driver -- has emerged from the telecom graveyard stronger than ever.

About Us | In the News | Management | Contact Us | Archive | Premium Membership | Terms of Use | Privacy Policy | Careers | FAQ

All quotes are 15 minutes delayed. Copyright © 2006 by Catablast! Media Group LLC, part of the SeekingAlpha network. Web Design by Synexio Systems. All Rights Reserved.