Global technology-based company Corning Inc. (NYSE:GLW) produces optical fiber, cable, and photonic components for the telecom industry. It also makes glass panels, funnels, liquid crystal display glass and projection video lens assemblies for the information display industry.
So, why do we need to have this company on our radar now? That��s because Corning is set to unveil its ubiquitous Gorilla Glass upgrade, Gorilla Glass 2, this week at the well-known and -attended Consumer Electronics Show.
This is an important time for the company, one that could be pivotal for the share price. Corning stock was pummeled last November on an earnings warning due to the loss of a large customer, with the stock dropping nearly 20% on the news.
Gorilla Glass is still used in over 500 million smartphones, handsets, tablets and other devices, such as TVs. With tablet usage expecting to continue to grow strongly, along with the continual phone upgrades, Corning should continue to get a lift.
The stock is trading at a very cheap 6.5 multiple, and carries a nifty 2.3% dividend. With over $4 per share in cash, GLW still trades under a 6 multiple ex-cash even with an earnings hit of 30% due to the customer loss.
I look for GLW to continue to grind higher and head back to the gap from last November around the $15 level by May options expiration.
Based on GLW��s current market price of $13.52 and using a target price of $15, a target date of May 18, 2012, and $1,000 of investment capital, this is an excellent candidate for capturing some nice gains by buying the GLW May 12 Calls, buying the May 11-14 bull-call spread or buying the stock.
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Tags: 2012 Gold Stocks ,Best Performing Stocks For 2012 ,Best Performing Stocks To Hold 2012 ,BX ,KKR ,Best China Stocks 2012
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