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Strategies & Market Trends : Value Investing
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To: Wallace Rivers who wrote (45700)11/29/2011 7:18:19 PM
From: J Mako  Read Replies (1) of 78565
 
Apparently GLW's mgmt didn't see it coming. Otherwise, the CFO wouldn't buy shares on the market.

The first order issues don't worry me too much -- shrunk margins, lowered volume, dropped utilization. We've been there before in the GFC. As Clownbuck said, the throughput in the supply chain fluctuates wildly. All these don't change the long-term fundamentals of GLW's business and its moats.

But I start pondering upon the second order implications -- why did that LCD maker went to such an extent to breach a contract? Is the LCD industry going through permanent structural changes? Is that LCD maker under financial stress? (Do they have PIIGS bonds??) Is it going out of business?

Sergio rightly pointed out the risk of GLW's concentrated clients that I'd dismissed earlier.

Do we know which LCD maker cancelled the contract?
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