Corning (NYS: GLW) hasn't panned out to be the investment many have claimed it could be, at least not yet. But the thesis that the company is a compelling value stock remains. Corning is already recognized as having a very strong balance sheet, yet one big asset remains hidden as an ordinary line item: the company's two joint ventures -- Samsung Corning Precision and Dow Corning.
The profitable ventures are carried at about $4.8 billion on the balance sheet yet earned about $1.5 billion for corning in 2011. Even considering tepid growth from these joint ventures, they are still carried at an enormous discount to their profitability. Corning has a long-term reputation for innovation and success across a history of glass application, yet the market seems to be writing off their ability to leverage these joint ventures for future use.
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The article 1 Cheap Dividend's Hidden Asset originally appeared on Fool.com.
Austin Smith owns shares of Apple and Corning. The Motley Fool owns shares of Apple, Corning, and Google. Motley Fool newsletter services recommend Apple, Corning, and Google. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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