Barron’s Jumps on Corning Bandwagon

Better Investing

What's Hot

23 Upgrades Under $50 to Make Your House Look AwesomeAround The House

Trump Worth $10 Billion Less Than If He’d Simply Invested in Index FundsBusiness

Do This or Your iPhone Bill May SkyrocketSave

11 Places in the World Where You Can Afford to Retire in StyleMore

19 Moves That Will Help You Retire Early and in StyleFamily

What You Need to Know for 2017 Obamacare EnrollmentFamily

8 Things Rich People Buy That Make Them Look DumbAround The House

50 Ways to Make a Fast $50 (or Lots More)Grow

32 of the Highest-Paid American SpeakersMake

The 35 Two-Year Colleges That Produce the Highest EarnersCollege

5 DIY Ways to Make Your Car Smell GreatCars

Amazon Prime No Longer Pledges Free 2-Day Shipping on All ItemsMore

More Caffeine Means Less Dementia for WomenFamily

7 Household Hacks That Save You CashAround The House

5 Reasons a Roth IRA Should Be Part of Your Retirement PlanGrow

30 Awesome Things to Do in RetirementCollege

Beware These 10 Retail Sales Tricks That Get You to Spend MoreMore

9 Tips to Ensure You’ll Have Enough to RetireFamily

Turns out that the highly-respected investment magazine Barron's likes one of the same stocks I do for the exact same reasons. They even have the same price target. The only difference between their article and mine? I liked the stock of the LCD glass-maker 3 months and 3 points before they did.

The last purchase I made for my online stock portfolio was Corning Glassworks – Back in August, I bought 500 shares at $16.67. My logic? From the post Stock Purchase: Corning – Glass Half Full?:

The LCD television market is huge, expanding, and Corning is a key supplier of the glass on the front of these TVs. Corning believes sales of LCD TVs will be up 28 percent this year. While fiber optic cable sales are growing slightly, the weak economy has kept growth for that material in the low single digits – but since fiber optic cable is the backbone of global communications, as the economy rebounds, so will sales.

There’s been a recent buzz about Corning’s Gorilla Glass: It’s a light, thin, but super strong, glass that Corning is touting for handhelds, computers, and the next generation of borderless TVs (check out this article). Corning expects to sell about $250 million of it this year, but that could quickly grow to $1 billion or more next year.

In short, new technology requires glass, and no company in the world is better positioned to exploit that need than Corning. In addition, the stock is trading at less than 10 times this year’s expected earnings, has a ton of cash, and a manageable debt level.

My goal for Corning is around $25/share within the next two years. If I’m right, that’s a 50-percent gain.

It appears someone from Barron’s was reading my article. Since Barron’s is subscription-only, I can’t direct you to that story. But here’s part of a Reuters story that appeared this morning about the Barron’s recommendation…

Shares of video screens maker Corning Inc could reach $25 next year as investors recognize the company’s pipeline of new products and new uses for liquid crystal displays, Barron’s said in its Dec. 13 edition.

…But ultra-thin monitors will soon show up in more rooms in middle-class homes, and consumers are likely to replace their TVs more often than they did in the past, the weekly said.

The company also has a promising product in Gorilla Glass, a strong-scratch-resistant sheet that accommodates touch-screen functions in products like Apple iPhones and iPads.

Unlike when I wrote my similar endorsement of Corning on Aug. 16, the Barron’s mention moved the stock higher in today’s trading – as I write this, it’s at $19.65, up $0.65. So Barron’s readers who read the Barron’s article over the weekend and bought at today’s open are up 3.45 percent. But those who bought the stock at $16.67 when I wrote about it in August are up 17 percent.

Check out my real-money portfolio every now and then. I don’t make stock recommendations – you need to decide for yourself what’s suitable for you. But unlike many others out there dispensing advice, at least I put my own money where my mouth is.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!


Read Next: 9 Tips to Ensure You’ll Have Enough to Retire

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,655 more deals!