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Corning is the leading provider of flat panel glass for LCD television and computer monitors. The company is also the largest manufacturer of fiber optic cable for telecommunications networks. But the production of LCD glass is the big money maker, accounting for nearly half of Corning's sales.

Darice Liu, an analyst with Maxim Group, believes that demand for flat panel glass will remain healthy in 2008. She said the industry experienced overproduction in 2006, but rebounded in 2007, as capacity plans were cut and inventory levels stabilized.

There are concerns that consumers may shy away from buying expensive items like flat-screen TVs in this weak economy. But this appears to be factored into Corning's stock price. Shares trade at only 14 times earnings estimates for 2008, which looks reasonable given that the company's earnings are expected to grow at an average of 16% a year over the next 5 years, according to analysts.

And even if the economy in the U.S. continues to sputter, Lehman Brothers analyst C. J. Muse says demand for LCD televisions will remain strong in many emerging markets like India, China and Latin America. In addition, the Summer Olympics in Beijing could give sports enthusiasts around the world motivation to upgrade to a new flat-screen TV if they don't have one already.



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