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Technology Stocks : Corning Incorporated (GLW) -- Ignore unavailable to you. Want to Upgrade?

To: runningelk who wrote (380)	1/21/2000 11:20:00 PM
From: Katz R Us	Read Replies (3) \| Respond to of 2260

Thread, I first looked at this stock 6-8 months ago at 60+. I was looking for solid companies for my IRA. I decided this one was just too boring and didn't buy it. :-(( Very dumb! I have had it in my watching portfolio for months--and when it started flying, I still didn't bite, because I didn't realize that its primary business was fiber-optics (I was still thinking of buying glasses in packs of six!) I own JDSU, could be my all-time fav; and it appears that GLW is a pure competitor. Questions: (1) Can they both survive and flourish? (2) Is GLW way too high to buy now or not? TIA, Barbara

To: runningelk who wrote (380)	1/22/2000 11:40:00 AM
From: Asymmetric	Respond to of 2260

My Assessment of Corning at $163/Sh. Obviously there's been a huge accumulation of shares in Corning and money inflow into the stock in just the past month. Actually, the proper english term would be explosion. So where does that leave us today? Some facts to mull over: At $163/sh, Corning now sells for a PE of 89. At $163/sh, Corning's forward PE ratio on projected Yr 2000 earnings of $2.34 (consensus estimates) is 69.6 Corning's PEG ratio is over 3.7. With 1999 Revenues of $3.47 Bil, Price/Sales Ratio is 10. Note however that using past 12 months figures Corning's sales figure is $3.975 Bil. Corning's 1999 Profit Margin is lsited as 11.3% and projected to rise in 2000 to 18% or so. Note that Corning's past historic 5 yr net profit margin was 5.4% Corning has 20,000 employees and has a Sales/Employee ratio of $174,200. Corning carries a Debt Ratio of 0.7%, and they are covering their purchase of Siecor by proposing to float an additional 13 million shares. Corning's Return on Equity is 25.5% Corning has risen 131.8% in the last 3 months. Corning's 50 day moving ave is at $111.80 Corning's 200 day moving ave is at 76.61 My own personnal conclusion is that right now Corning is a very, very expensive stock fundamental wise, and technically the stock is very extended in price. I would not counsel it's purchase at this price. But in light of the fact that fiber-optic cable, which comprises over 50% or Corning's total sales, has a very bright future over the next several years, would consider this on any major market pullback. This is just one person's opinion and obviously in no way is meant to be construed as investment advice. As always do your own due diligence. Good luck to all. Back to lurking. Peter