Corning Inc (GLW)

(A To Pick April 12/13. Down 3.98%.)

This is a stock that looks very appealing as it is trading at a very low multiple but what is happening is that glass is becoming commoditized and margins are getting squeezed.

(Top Pick Mar 11/12, Down 10.51%) Play on smart phone and tablet world. He likes it because every one of its major markets are bottom of the cycle. Buy back, tons of cash. All divisions should recover by 2-3 years. Expecting a recovery in consumer demand including housing demand, and suspects TV sales will slowly improve. 3% dividend and a buy back. He would be buying all the way up to $13. The bottom has been hit on TV sales, which is the headlines that this one moves to.

Not one of his favourite companies. Issue is commodity. There are only 3 competitors on the glass side but they tend to beat each other up on margins. Corning is tied to flat screen televisions and they have not grown in sales recently. There is not much chance of growth. Apple is notorious for not letting the supplier take the margin and keeping it for themselves.

Thinks there is more downside to come. This is driven by consumer demand for TVs etc.

(Top Pick July 8/11, Down 35%) He reduced the position when it fell out of the S&P 100. Model $ 23.71, 107% upside. But he believes Corning will end up at around the $9 level. It will re-invent itself again.