For all those who love the kingly JDSU:
Steve Mamus, over on our options thread, pointed out GLW, Corning...let me reproduce some posts here. Has a PE 1/3 but very strong in the optical fiber bizness. Had a high in the 170s, got down to the 140s yesterday but popped late in the day. If it would retrace a bit again it would be worth taking a position, I think. I'm looking at it as a companion stock along with JDSU. It sells different components than JDSU and has huge demand for them. Here are some links/articles from the CORNING thread.
1) Message 12770698
Wall Street Journal article:
Corning to Pump $750 Million
Into Its Fiber-Optics Business
An INTERACTIVE JOURNAL News Roundup
CORNING, N.Y. -- Faced with booming demand for products that can handle the explosion of traffic on Internet networks, Corning Inc. announced a plan Thursday to spend $750 million to expand and enhance the company's optical-fiber manufacturing capabilities. Corning said it expects the expansion to increase its capacity by more than 50%.
Corning is already the world's biggest maker of fiber-optic lines and a leader in making the complex components that piece together optical networks. Corning holds an estimated 40% of the global market, or about twice the reach of its next closest competitor, Lucent Technologies Inc.
Corning's multiyear plan includes equipment enhancements or plant expansions or both at the company's Concord and Wilmington, N.C. plants and its plant in Noble Park, Australia.
The company cited the need to keep pace with demand for its optical fiber products while allowing for new product development and commercialization. The global expansion of fiber-optic networks and the need for greater bandwidth has pushed up demand for Corning's optic fibers, especially overseas.
Corning, which had $4.37 billion in revenue in 1999, makes optical fiber, cable and photonic products for the telecommunications industry, and sells high-performance displays and components for the television and other communications-related industries.
2) biz.yahoo.com
Corning Completes Acquisition of Siemens' Worldwide Optical Cable, Hardware and Equipment, and Fiber Businesses
CORNING, N.Y.--(BUSINESS WIRE)--Feb. 2, 2000--Corning Incorporated (NYSE:GLW - news) announced today that it has completed the acquisition of Siemens AG's worldwide optical fiber and cable and businesses, including its two co-investments with Siemens --Siecor Corporation and Siecor G. The acquisition of the German-based RXS hardware and equipment business, pending formal approval by German authorities, will close when this approval is obtained.
Corning also announced today the integration of the company's worldwide optical cable, hardware and related equipment businesses into one operating unit called Corning Cable Systems. The new operating structure is effective immediately. The organization's new name will be phased in and be complete by June.
In making the announcement Corning Cable Systems' President and Chief Executive Officer Sandy Lyons said, ``With the integration of all of our operations, we are now one cable, hardware and equipment business, with a global presence and a global customer base. With a product portfolio that encompasses high-bandwidth copper and optical fiber cables, all the related hardware and equipment, and network services that include design, management, installation and maintenance, we are the industry's leading manufacturer and solutions provider for tip-to-tip communications products.'
Corning Cable Systems includes the former North American based Siecor Corporation, UK-based Corning Cables, the former Siemens Communications Cables, and will include Siemens RXS, pending regulatory approval. The operations have sales of $2.2 billion and have approximately 12,600 employees worldwide.
Additionally, it was announced that the former Siecor G, will become part of Corning's Telecommunications Products Division, led by Alan T. Eusden, vice president and general manger. As a leading manufacturer and supplier of optical fiber, Corning anticipates a fully integrated Siecor G, contributing significantly to the company's growing worldwide fiber business.
Established in 1851, Corning Incorporated creates leading-edge technologies for the fastest-growing markets of the world's economy. Corning manufactures optical fiber, cable and photonic products for the telecommunications industry; and high-performance displays and components for television and other communications-related industries. The company also uses advanced materials to manufacture products for scientific, semiconductor and environmental markets. Corning's revenues in 1999 were $4.3 billion. More information on the company is available at www.corning.com.
3) Message 12646150
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 |
