Trading 8x 2013 earnings, GLW is the proverbial value play that can offer outsized returns, if the stars align for them. The flat screen teevee market is a big driver for Corning Glass (GLW makes the glass for the mobile and television markets). However, the teevee market has been sluggish, due to a long standing oversupply condition in inventories. It’s what bankrupted Circuit City.
But, that shit can change overnight, literally.
Should Apple launch its Apple Teevee in the 4th quarter, I believe this will rejuvenate the teevee market in a number of ways. Not only will people offer to kill each other for a $5,000 Apple teevee, but competitors will copy cat the machine, leading to a boom in the industry—identical to what happened in the phone industry upon the launch of the iPhone. At the time, no one believed Apple would impact RIMM. People bought RIMM, thinking “Apple can’t touch the enterprise side of the business.” Well, Fast forward a few years and not only is Apple eating RIMM’s lunch, but so is Android–reducing the Canadian rotary phone maker to “worthless dicksuckers.”
Now the teevee manufacturing process is a lot different from the phone and it requires a lot more glass to fill a 64 inch screen than a 5 incher. At this stage, I am simply running on logic and gut instinct. But, I’ll get the data together to support my thesis within time. The only problem with buying GLW now is timing. We may be a bit early to the trade and they might miss earnings in the short term. However, in my opinion, any dips should be met with buys, up to $20.
Yes, this a a longer term hold, just like YELP, similar to my previous beliefs in WNR, FTK, GMCR etc.
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