Why I'm Scared of Corning
Jan 9th 2013 8:30PM
Updated Jan 10th 2013 2:55AM
In the video below, Fool analyst Austin Smith takes a look at some potential worries for investors in Corning .
Austin own shares of Corning, but there are some things about the company that make him a bit uneasy. The first is that LCD TV panels are not what they once were and are now giving up some ground to more expensive OLED panels. The general consensus is that OLED panels are more superior. Should they become less expensive, which often happens with technologies over time, it could hurt Corning.
Another worry is that Gorilla Glass, one of the most compelling reasons to buy Corning, still makes up only about 20% of the company's revenue, and almost none of its earnings.
Smaller panels for smartphones and tablets have not offered the same profit potential as the large TV panels, so it would need to sell significantly more of the products to offset the losses in earnings, Austin says.
Corning's Gorilla Glass is widely believed to be the glass used in the iPhone, among other smartphones. Apple has been a longtime pick of Motley Fool superinvestor David Gardner, and has soared 219.20% since he recommended it in January 2008. David specializes in identifying game-changing companies like this long before others are keen to their disruptive potential, and he helps like-minded investors profit while Wall Street catches up. I invite you to learn more about how he picks his winners with a free, personal tour of his flagship service, Supernova. Inside, you'll discover the science behind his market-trouncing returns. Just click here now for instant access.
The article Why I'm Scared of Corning originally appeared on Fool.com.Austin Smith owns shares of Apple and Corning. The Motley Fool recommends Apple, Corning, and Universal Display. The Motley Fool owns shares of Apple, Corning, and Universal Display . Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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