Earlier this week I bought Corning, an innovative glass company that has been around for over a hundred years. The stock has been on my watch list for some time and with price hovering around the 52-week low, I felt now was the time to buy. The valuation on this stock is hard to pass up, trading at close to 6 times earnings! There was some recent bad news coming from the company where they stated their earnings will below expectations this quarter due to a Korean company canceling a contract, but I’m not overly concerned that this is a trend and the future growth of the company looks bright for their scratch resistant Gorilla Glass — the glass used in smart phones and tablets. I believe the stock is currently priced for the worst case scenario, and as a bonus, the stock currently has a 2.3% yield. The company also has a rock solid balance sheet. Looking at the numbers and future prospects of the company, I’m of the opinion the downside risk is small.
Price: $13.54 per share (as of 14 Dec 11)
Motley Fool CAPS Rating: 5-stars