Will Gorilla Glas Propell GLW above $100

The highest price for Corning Incorporated Common Stock in recent years was $113.33 on September 1, 2000. Recently the stock price for GLW saw some nice increase. It looks like this run was fueled by the announcement of Q2 results that were up 41%.

Behind these good results stands the Gorilla Glas. As reported by the Wallstreet Journal, "Gorilla Glass is on pace to generate sales of $250 million this year, and the company expects it to be a billion-dollar business by next year. It plans to invest about $800 million building a production facility in Beijing".

Benzinga.com reports, that the analysts at Jefferies & Co continue to promote their "buy" rating on Corning (NYSE: GLW). Jefferies & Co sets the target price for GLW to $23. Jefferies & Co also says, “Yesterday, Corning confirmed our views with a press release indicating that they expect Gorilla Glass sales  could reach approximately $1 billion annually by 2011."

James B. Flaws, vice chairman and chief financial officer said in a company press release: "LCD TVs have become the product of choice for consumers and the speed at which they are replacing CRT models is accelerating. This technology substitution is expected to fuel the LCD glass market for several years to come. Telecommunications carriers worldwide continue to invest in broadband network expansions, and we are seeing rapid acceptance of our Gorilla™ glass as a cover glass for many handheld and computer applications. These are promising signs that our businesses are poised for future growth.”

Now, lets take some math and see where we end up: $250 million in sales for the Gorilla Glass seem to justify a stock price of $23. If that segment is predicted to grow 4 times, a stock price of $100 does not look to far fetched, at least within a year or so.

Imagine what might happen if the iPad craze continues and other companies come out with similar products that actually sell. Or look at the trend for cell phones: they grow larger and larger with real glass screens intead of the shabby plastic screens.

See these articles for Gorilla Glass in the iPhone 4 and Gorilla Glass in the iPad.

Tested.com reports: "Manufacturer Corning claims the glass can withstand nearly anything us puny humans can throw at it, and electronics makers are flocking to the screens in droves". With a gain of over 5% for today GLW is at least among the top percentage gainers for the day.

All this is just speculation on should not be seen as any kind of investment advice and is for entertainment purposes only. Please do your own research.