Buy Corning, A Turnaround Tech Stock

Aug. 30, 2012 - PRLog -- Corning Incorporated (GLW) is the world leader in specialty glass and ceramics, and manufactures products in its 60 plants in 14 countries. It operates five segments, of which the Display Technology segment, along with its collaboration with Samsung Electronics, provides the largest revenue stream of 40% (according to 2011 figures). Corning is behind the leading innovations in the manufacturing of LCDs for monitors and televisions, and its continued insistence on aggressive research have made it the leader in the LCD Industry. Its Specialty Materials segment has introduced the now industry standard of protective cover glass (Gorilla) used in tablets, notebooks and mobile phones. In early 2012, it introduced Gorilla Glass 2, an innovation that reduces glass thickness by 20%, which is highly in demand by manufacturers seeking lighter and thinner products. Specialty Materials accounted for 14% of total revenue in FY2011.

Worldwide hunger for larger detailed screens and tech giants such as Apple (AAPL) and Samsung requiring tougher and thinner screens for their sleek smartphones and tablets points towards the bright side for Corning. Bad times may not be over, but the worst is definitely behind us. The slump in display prices and volumes is expected to ease during the second half of 2012. Consequently, and because of the fact that Corning will already have built the capacity, earnings are expected to increase and margins are expected to stabilize.

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