Corning Incorporated (NYSE:GLW) to Give Back Shareholders Half of Market Cap

November 9, 2016

Chief Investment Officer H. Edward Shill says Corning Incorporated (NYSE:GLW) has a very exciting profile, with a platform between now and 2019 where they will return half of the company’s market cap back to shareholders.

This is a company that makes the cover glass that goes on your iPhone, they make the cover glass that goes on your iPad, they are making a big push in the glass and automotive, and they are with a joint venture with a company called OLEDWorks moving into the OLED lighting business.

And from our perspective, the profile of Corning is very exciting. They have a platform between now and 2019 where they’re going to generate an aggregate somewhere between $25 billion and $30 billion of cash, and give half of that cash to shareholders. And I said $25 billion to $30 billion in cash between now and 2019; the market cap on this company is only $23 billion to begin with. So you’re going to get roughly half of the market cap given back to you in dividends and share buybacks between now and the end of 2019.

That’s a stock that has got a risk/reward ratio of probably 10 up and two or three down from here. So that’s the name that I really don’t care if the market’s overbought or oversold; I don’t care if the economy is going into a slowdown. I think that’s a name that can work very well over the next 18 to 24 months as this cash starts to come back to shareholders.

h-edward-shill
H. Edward Shill