GLW and LCD for PDA's:
WSJ article on GLW:
Thanks Pat!
interactive.wsj.com@6.cgi?mfmuse/tex...
In part:
. . .Demand for fiber, optical components and other telecom equipment is fierce. But given Corning's big run-up in the last year, is it still attractive? I think so. Consider its rivals. In the fiber market, Corning's main competitor is Lucent - a company with more problems than the math section of the SAT. Lucent's 2001 price-to-earnings ratio of 32.9 might look like a bargain compared with Corning's 88, but in this case, you get what you pay for.
In optical components, it's the opposite story. Corning's P/E looks awfully low when compared with industry leaders like JDS Uniphase (JDSU) (268.8), Broadcom (BRCM) (353) and SDL (SDLI) (245) - to say nothing of big components buyers like Ciena (CIEN) (312.7) and Sycamore (SCMR) (1024.4).
I think Corning deserves a higher multiple, for a few reasons. First, its telecom business is chugging along as well as any other. Second, and just as important, telecom isn't its only business. Corning's information-display division, which makes the glass used for flat-panel LCD computer monitors and other screens, grew 30% in the second quarter, to $215 million, and demand remains high. LCD screens are used in laptop computers, personal digital assistants, flat-screen televisions, small DVD players and digital cameras - and will increasingly be incorporated into cell phones, kitchen appliances and other gadgets. According to Corning spokesman Robert DeMallie, the company controls two-thirds of this market, and more than 80% of its future LCD capacity is already under long-term contract.
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