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David and Goliath of LCDs - 20 Gurus Hold GLW, One Guru Holds WGA
Posted by: Sally Jones (IP Logged)
Date: October 27, 2013 08:41PM
Corning Inc. reported last week that it will buy Samsung Corning Precision Materials Co.’s stake in their liquid crystal display (LCD) panel joint venture for around $300 million. The acquisition, set for completion in early 2014, is expected to add around $2 billion per year to Corning’s sales, according to Reuters.
Here’s an update on the David and Goliath of the liquid crystal display (LCD) arena, with giant Corning Inc. (GLW) versus a small but growing global competitor, Wells-Gardner Electronic (WGA).
Corning Inc. (GLW)
Up 48% over 12 months, Corning Inc. has a market cap of $25.34 billion; the current GLW share price is $17.35 and trades at a P/E of 13.30. The dividend yield is 2.19%.
First incorporated in 1936, Corning Inc. is a global, technology-based corporation that makes high-performance glass for a wide variety of applications. The company operates in five reportable business segments: display technologies, telecommunications, environmental technologies, specialty materials and life sciences. Corning glass is used in: LCD televisions and computer monitors, optical fiber and cable and hardware for telecommunications, ceramic substrates for vehicle engines, and laboratory products and biotechnology applications. Corning glass is also used in advanced optical materials for the semiconductor industry and for scientific applications.
Guru Action: Out of 20 billionaire investors, Dodge & Cox is the top guru stakeholder as of June 30, 2013. The firm holds 55,470,068 shares or 3.8% of shares outstanding. In the second quarter of 2013, Dodge & Cox increased its position by 47.03%, buying 17,744,100 shares at an average price of $14.54 per share for a gain of 19.3%.
Over a five-year history, Dodge & Cox has averaged a gain of 27% on 55,470,068 shares bought at an average price of $13.65 per share.
In the second quarter of 2013, four gurus, including Louis Moore Bacon, Tom Russo, Ruane Cunniff and Meridian Funds, sold out their GLW holdings.
Dodge & Cox is one of 20 guru stakeholders and there is very active insider trading to report for 2013.
Historical share pricing, revenue and net income:
Wells-Gardner Electronic (WGA)
The current WGA share price is $1.63, or 32.9% off the 52-week high of $2.43.
Down 21% over 12 months, Wells-Gardner Electronic has a market cap of $19.08 million, and trades at a P/E of 28.10. The company does not pay a dividend.
Founded in 1925, Wells-Gardner Electronics Corporation competes globally in the design and manufacturing of video display solutions for the gaming and entertainment markets. The company makes and distributes LCD flat panel displays and digital monitors, and supplies gaming machine manufacturers, casinos, and coin-operated video game manufacturers. A company subsidiary, American Gaming & Electronics, is a parts distributor, service center and seller of refurbished gaming machines.
The company reported financial results for the second quarter of 2013, with a 9.6% increase in net sales at $14.1 million, compared to $12.8 million in the second quarter a year ago.
Wells-Gardner’s net income for the quarter was reported at $31,000, up from a net loss of $126,000 in the same quarter, year-over-year. Gaming industry sales increased by 18% for the quarter, and the VGT backlog at the end of second quarter 2013 was reported at $22 million.
The company expects a 21% to 27% increase in total net sales for 2013, translating to sales revenue between $62 million and $65 million. In 2012, the company’s net sales were $51.1 million for the full year.
Guru Action: The sole guru stakeholder is Jim Simons as of June 30, 2013. He holds 102,776 shares or 0.88% of shares outstanding. In the second quarter of 2013, he reduced his position by 6.97%, selling 7,700 shares at an average price of $2.03 per share, for a loss of 19.7%.
Over a five-year history, Jim Simons has averaged a loss of 19% on 110,476 shares sold at an average price of $2.01 per share. His highest gain of 226% was made selling 6,174 shares at an average price of $0.5 per share in the first quarter of 2009.
Jim Simons is the only guru stakeholder, as of June 30, 2013, and there is active insider trading.
Historical share pricing, revenue and net income:
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Guru Discussed: Dodge & Cox: Current Portfolio, Stock Picks
Jim Simons: Current Portfolio, Stock Picks
Stocks Discussed: GLW, WGA,