Corning, Inc. - The Quick Version

Corning, Inc.
Corning is engaged in the specialty glass, ceramics, and optical physics business operating in five reportable segments: Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials and Life Sciences. Listed competitors include Optical Cable Corporation, PPG Industries, Inc., and Thermo Fisher Scientific, Inc.

Future Value
My short-term (3-6 week hold) target price for the stock is $33.41, with an initial trailing stop at $28.45. My future (5 year hold) target price for the stock is $50, which is an average annual return of 15%. A prior five year hold of the stock would have returned an average of 32% per year. Please remember that any investment has the potential for loss and that past performance is no guarantee of future results.

Fair Warning
Corning, Inc. (NYSE: GLW) – FYE 12/2017 – OVER VALUED – The stock is currently trading above my most recent ($-6) fair value estimate. Please See Linked Worksheet

Repatriation
With the passage of the Tax Cuts and Jobs Act of 2017, companies are able to repatriate untaxed cash earned overseas. To do so requires that a company determine what the taxes on that income would have been, and to pay those taxes in their current fiscal year. This event changes a company’s earnings and consequently its fair value. Adjusting a company’s effective tax rate to standard norms, produces a PRO FORMA fair value that should never be relied upon. In this one instance, earnings would be adjusted from ($0.65) to $0.63, and the fair value estimate would be adjusted to $7.
Posted on 03/05/18