Corning (GLW) Raises Guidance for 2nd Time in 5 Weeks Due to.... What Else? China

Submitted By Trader Mark
Corning (GLW) is a very interesting situation situated at the far end of the supply chain (very close to the end consumer) - it has been posting some positive data points the past few months but what does it tell us overall? The tech sector has been the one area of sustained domestic out performance for the 1st half of 2009 - some of this is due to stronger than average balance sheets (high cash, low debt), some of it is due to "playbook" - especially in the semiconductor space. When you believe the economy is turning around one of the early cycle sectors you run into (en masse) is semis...

So while the world was in a cocoon like state from fall 2008 to mid winter, inventories were drawn down and orders fell off a cliff in most areas of the economy, including most of the "technology" space. Now the big arguement is whether this "restocking" cycle that in retrospect has been happening the past 2-3 months is a 1x event to make up for the cocoon stage, or the first signs of re-accelerating global growth. And how much is do to government transfer payments to its citizens, and how much is pure demand. Without making an arguement one way or the other - let's look at Corning; which is not a "semi" stock, but perhaps might be a similar type of indicator.

Corning Incorporated manufactures and processes specialty glass and ceramics products worldwide. It operates in five segments: Display Technologies, Telecommunications, Environmental Technologies, Specialty Materials, and Life Sciences.
While there are 5 business segments, Corning is basically 2 major business lines which make up 75% of sales: (1) "display" (LCD that go into TVs and computers) and (2) telecommunication - fiber optic product of all types. Even more importantly perhaps is 50%+ of sales now come from Asia, so much like an International Business Machines (IBM), or Yum! Brands (YUM) - what we think of as an "American company" is really being driven by sales overseas.

So along with the restocking question, we have to decipher if any company / sector specific growth is due to stable (or stimulus happy) parts of Asia, or if its part of a bigger mosaic of worldwide recovery. All good questions which will only be answered full when we look back in a year and have 20/20 hindsight as our friend.

But for now, the Chinese - especially those of the TV buying kind - seem to be driving Corning's sales surge. What is interesting over and above the news is the stock reaction. Again, it is NOT the news but the REACTION to the news that matters - Corning announced this uptick in sales yesterday morning but the stock traded down on the day. Hence, one might assume the good news is already "baked" into the stock.

Let's delve deeper into the actual upside and drivers.

Corning (GLW) CFO James Flaws this morning said in a statement that second-quarter glass demand “is much stronger than we anticipated even a few weeks ago.” He says the company now sees Q2 sequential volume up about 100% in its wholly owned business. That is up from an original forecast of 50% growth, which had been revised up to more than 75% at the end of May.
Flaws noted that the company met much of the improved demand by drawing down inventory, but that has it also has begun shipping glass from melting tanks restarted earlier in the quarter.
Flaws second quarter prices were “moderate,” with smaller price declines than in Q1. He says Q2 supply chain inventory is about even with the start of the year, which he says is a positive sign.
Driving demand is continued strong demand for LCD televisions. He notes that April LCD TV sales were up 22% in Europe and 77% in China. In May, he says, LCD TV sales were up 48% in Japan. In the U.S., growth slowed in April, but he says “reports that we have received indicate a significant upward spike in domestic LCD TV sales in late May and the first three weeks of June.”

So why the "eh" reaction in the stock?

Share reaction was muted, however, as analysts said investors had expected the move by Corning and were concerned that the improvement in demand might be short-lived.
"To some extent investors fear a repeat of what happened in 2008 when Corning was bullish in the first half but saw a fall off in demand for glass in the second half," said Morgan Keegan analyst Paul Bonenfant, but added that he did not agree with that view.

This will definitely be one of the stocks to watch in the 2nd half 2009 due to its extremely cyclical nature.

No position

Did you like this article?

Login or register to post comments
Email this page
Reset vote
0 points

yanyingping Nikeshoxshop.com

Submitted by nike123 on Sat, 03/20/2010 - 11:02am.

yanyingping Nikeshoxshop.com is an online Nike Shox shoes outlet store, at which you can purchase discount & cheap Shox Shoes. Nike Shox sale online. Find great deals on Sporting Goods, Nike Shox R4, Cards Fan Shop and get what you want now! Shopping is the best place to shop for Nike Shox NZ Shoes, kids nike shox shoes Compare products, compare prices, read reviews and merchant. The best selection about Nike Shox NZ advertising and marketing. Shox Torch around the globe, updated daily. A point of reference for advertising professionals and advertising Nike Shox R4. China discount Nike Shox directory - Offering products from Chinese manufacturers, nike shox turbo suppliers, Chinese buyers, importers, wholesalers & distributors Shox TL1 at discounted price. We have a monopoly in Nike TL3 Shox, new styles, with Free shipping, 50% OFF offering.

Guess was established in the

Submitted by erye on Thu, 03/11/2010 - 8:16pm.

Guess was established in the early '80's and mbt tunisha has since become one of global lifestyle brands. Today,guess handbags outlet, markets and distributes full collection of women,mbt lami birch men and children's apparel, as well as guess handbags outlet and accessories. Many women consider this Designer handbags outlet, Guess purses and Guess bags as among the "must have" items in their wardrobe.nike air max 95 At present,nike air max handbags are not just fashion statements anymore.nike air max 360 Bags must be large,2009 air max sturdy and functional to support the needs of the modern woman.mbt lami birch It is not unusual for women to more than one bag. air max 2003 A vital necessity for one bag is not adequate to carry everything she needs.nike air max 2010 Guess handbags are trendy that complements every fashion-conscious woman's lifestyle.nike air max 95 Most retail stores sell Guess purses between nike air max 90, making this an affordable nike airmax 95.

liliHello,I'm Lily,the news

Submitted by lili on Tue, 03/09/2010 - 10:29pm.

lili

Hello,I'm Lily,the news you post is very useful for me, I am agree with this view, but I also have some of my own opinion about this.For myself,the stars blowing a wing about the Ugg Boots ,ugg boots sale unique material, so that it can be worn all year round.Ugg Classic Boots are hotsale in 2009 such as UGG Classic Short ,UGG Classic Tall,UGG Classic Mini, simple style and easy match with clothes are their greatest strengths,sure the UGG Ultra Short,UGG Ultra Tall,Ugg Bailey Button,UGG Classic Crochet, UGG Coquette Slipper,UGG Lo Pro Button,UGG New Style Boots,UGG Nightfall,UGG Sundance are also very hot.If you like to buy cheap ugg boots ,you can enter the www.uggboot.org ,in there you can find many uggs on sale.

This post is very great,I

Submitted by gjh on Mon, 03/08/2010 - 8:20pm.

This post is very great,I like to read again.Thank you very much! Cheap Timberland Bootscheap timberland classic bootskids timberland bootsTimberland timberland boot Timberland Bootstimberland boots cheaptimberland boots for cheap timberland boots for kids timberland boots for men timberland boots for saletimberland boots for women timberland boots men timberland boots on sale timberland boots uk Timberland Classic Timberland Mens 6 InchTimberland Mens ChukkaTimberland Mens Customtimberland shoes timberland uk timberland women boots Timberland Work Bootsnike shox,nike air max,air jordan shoes,air force 1,nike nba shoes,nike dunk sb,nike air max 90 ,cheap air max,cheap nike shox nike dunks.cheap ugg boots Uggugg australia bootsUgg BootUgg Bootsugg boots on saleUgg Boots Saleugg on saleUgg SaleUggsugg classic tallugg classic tall Bootugg classic tall saleugg tallugg tall bootsUGG Classic Tall blackugg short bootsugg short boots saleugg classic shortugg classic short saleclassic short bootsclassic short boots saleugg classic short boots chenyuhua

»
Login or register to post comments

mens lacoste shoes has an

Submitted by erye on Fri, 03/05/2010 - 1:50am.

mens lacoste shoes has an unrivaled heritage in lacoste shoes cheap the sports fashion market.The lacoste shoes for women continues to appeal to the lacoste shoes sale young consumer and the lacoste footwear line is no exception.We have lacoste shoes for men and lacoste men shoes.These stylish and fashionable lacoste shoes have the most competitive price.lacoste shoes sale 7 business days delivery!buy lacoste shoes Welcome to our website.

»
Login or register to post comments

Comfortable mbt shoes known

Submitted by erye on Sat, 02/27/2010 - 9:20am.

Comfortable mbt shoes known for offering branded shoes,mbt shoes online and other footwear items from renowned manufacturers,mbt sale gains world recognition for offering authentically designed mbt walking shoes at easy-on-the-pocket prices.MBT Shoes M Walk, offered by Plant Shoes,mbt for sale is deliberately designed to increase the mbt on sale advantages of walking as well as exciting the mbt clearance good effects on health.If you wear mbt chapa, your body is forced to maintain its natural balance,mbt outlet thereby stimulating and exercising mbt shoes sale the body’s supporting muscle system.mbt shoes on sale.

»
Login or register to post comments

Shop online for authentic

Submitted by ugg mbt on Sun, 02/21/2010 - 9:34am.

Shop online for authentic luxury Porsche Design Watches,wholesale Burberry Handbags,wholesale rolex watches,Accessories including PTC 911,wholesale Nike Shox Shoes,mbt shoes,wholesale Dolce Gabbana Handbags,wholesale Louis Vuitton Handbags,Flat Six,wholesale ed hardy,wholesale rolex watches,Indicator at our website,porsche design watches,wholesale jordan shoes,nike air max 2009,The biggest brand discount website!

»
Login or register to post comments

Very great!wow,wow!The

Submitted by timberland on Sun, 02/21/2010 - 8:51am.

Very great!wow,wow!The message is so woderful!why not read that？ mbtmbt shoesmbt shoes salembt anti shoescheap mbt shoesLamimbt lamithe anti shoesM.WalkMBT M.WalkMBT Lami ShoesMBT Lami Birch ShoesMBT Lami Civiar Black ShoesMBT Lami Gray ShoesMBT Lami Purple ShoesMBT Lami Red ShoesMBT M.Walk Black ShoesMBT M.Walk Gray ShoesMBT M.Walk Green Shoes(NEW ARRIVAL)MBT M.Walk Peachblow Shoes(NEW ARRIVAL)MBT M.Walk Pink ShoesMBT M.Walk Purple Shoes(NEW ARRIVAL)MBT M.Walk Sky Shoescheap ugg bootsUggugg australia bootsUgg BootUgg Bootsugg boots on saleUgg Boots Saleugg on saleUgg SaleUggsugg classic tallugg classic tall Bootugg classic tall saleugg tallugg tall bootsUGG Classic Tall blackugg short bootsugg short boots saleugg classic shortugg classic short saleclassic short bootsclassic short boots saleugg classic short bootsTimberland bootsTimeberland boots sale Cheap timberland shoesTimberland work bootsClassic TimberlandTimberland Roll Top bootsTimberland Chukka BootsTimberland waterproof bootsUggugg australia bootsUgg Bootugg on saleUgg Bootsugg boots on saleUgg Boots SaleUgg Salecheap ugg bootsUggsugg tall bootsbailey buttonbailey button bootnike shox,nike air max,air jordan shoes,air force 1,nike nba shoes,nike dunk sb,nike air max 90 ,cheap air max,cheap nike shox nike dunks.

If you are looking for the

Submitted by Ecboots on Tue, 02/09/2010 - 8:53am.

If you are looking for the top boots such as timberland boots sale,christian louboutin shoes, uggs on sale,puma shoes ,high quality, Quick shipment,Lowest price and Good service. Many people care their health.To have a good MBT shoes, will help reduce the anxious.when you see mbt shoes sale, you can find timberland boots sale, christian louboutin sale and puma shoes sale, no matter which you like, there are some other styles, like timberland 6 inch boots, ugg bailey button,ugg argyle knit boots,timberland boots mens,timberland roll top boots, mbt lami shoes.these shoes make you so fashion in cold winter. Also,you can take a look the designer handbags,such as gucci handbags,chanel handbags, Louis Vuitton Handbags and so on.

puma shoes |puma speed

Submitted by xuxiangfei on Wed, 02/03/2010 - 10:06pm.

Your guide to Discount

Submitted by erye on Sun, 01/31/2010 - 10:22pm.

Your guide to Discount Designer Sunglasses Online including exclusive deals on Chanel Sunglasses, We are the direct manufacturer of classic chanel sunglasses provides you with wholesale,Gucci Sunglasses offer a large selection of wholesale replica sunglasses and wholesale Prada Sunglass,include ray ban sunglasses,Freepost Returns on all Sunglasses sale is a great source for sunglasses on Discount sunglasses sale.

Adidas shoes are famous for

Submitted by icecream on Sat, 01/30/2010 - 9:37am.

Adidas shoes are famous for skillful manufacture and superior quality.From Adidas Originals to Adidas Superstar Shoes,it make people satisfactory.We also offer all kinds Nike Air Max:Air Max 2009,Air Max 1,Air Max 2003.Now,ugg boots on sale,the famous is ugg classic cardy boots and UGG bailey button

Christian Louboutin Sale

Submitted by fan on Thu, 01/28/2010 - 2:34am.

Christian Louboutin Sale

As the climate is colder and colder, many more warm boots fight against cold. Christian Louboutin Boots avariable in worldwide, have become femininity, hight quality and nice design for women. So Christian Louboutin boots are very popular. Getting a pair of Christian Louboutin that is dream of every girl.
Christian Louboutin Shoes have peep toe, signature red leather sole will help you show your taste. They are sexy, gorgeous and fun. The designers ' national spirit, is " make shoes that are like jewels" and each unique design demonstrates an unparalleled degree of quality and a born sultriness. Christian Louboutin Shoes desined with leather lining,round toe, concealed platform,hidden heel and signature red sole,which will bring much confidence and comfort and make you more beautiful.
However, if you purchase online, you will find a couple of Christian Louboutin begins at a fraction of the price of the originally price, you should be aware that buy Christian Louboutin online can save your money. One began the discount Christian Louboutin and is payment have been offered in goodugg.net store.
Look at the Christian Louboutin! What a slender and graceful line! Ladies are crazy about it. If you are engaged in the vogue or you want keep the same pace with the trend. Christian Louboutin Sale could be your best choice.

Introducing the

Submitted by gucci rain boots on Fri, 01/22/2010 - 3:05am.

Introducing the gucci rain boots, available with colorful knit uppers and detailed with three oversized puma shoes outlet allowing it to be styled buttoned up, prada online sale,At the same time, somebody may say, all of the mens nike dunk, the lacoste shoes is the best choice. Some online stores also sell.

I remember a US client who

Submitted by GGG on Thu, 01/21/2010 - 3:05pm.

I remember a US client who wanted to evaluate the perfection of our louis vuitton bag and find the most probing test would be to take our replicas to a store. You can not help like these replica louis vuitton, I think that it is time for you choose some pretty unique ornaments in this season. I also recall another US client who had damaged the popper button of her louis vuitton outlet. She thought the best place to get it repaired would be a store.