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Trade Adjustment – Corning Inc (GLW) put selling addition

Corning Inc seems to be performing well. The outlook Morningstar presents hasn’t changed and they still estimate the value at $15 a share. My own calculation indicates 17 a share with 28% safety margin and annual expected return at 25%.

The PEG value of 0.9708 is below the Electronic Equipment, Instruments & Components industry median PEG of 1.93 and P/E of 11.6492 is also below the industry median of 17.41. With that the company seems to be slightly undervalued and for me it is still in a buy zone.

The stock pays dividend at $0.36 annual rate, which at today’s price level provides 2.70% yield. The 3 yr dividend growth is at 16.96%, the 5 yr dividend growth rate is at 18.07%. The company pays the dividend since 1990 and increased the dividend for 2 consecutive years.

Since the stock is in my buy zone and it is a company I am OK to own, I decided to sell 1 put contract on this stock:

04/10/2013 09:30:42 Sold 1 GLW Nov 16 2013 13.0 Put @ 1.00

I’ll keep you posted if I get assigned or keep the premium and repeat the process.

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