Woodshedder’s Excellent Catchby alphadawgg on May 13th, 2008 at 5:00 pm |
I’m posting this just in case some of you missed an excellent comment and observation by the Wood-meister in my previous post on Corning (GLW)….
“Dawg, re: GLW
It is my understanding that they have a significant portion of the diesel oxidation catalyst business mandated by the Gov. These new regulations basically make the diesel engine a portable air cleaner. Seriously, in the 2010 models, the exhaust from school buses, 18 wheelers, etc., will actually be cleaner than the outside air.
I believe that Corning is making the majority of the substrates in these oxidation catalysts. Keep in mind that every commercial diesel vehicle will now have these installed for emissions.
I may be off on some of the specifics here…but I believe I am correct. I have been watching GLW as I think this side of the business may have been missed by the less astute researcher.”
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Woody,
Very perceptive. You wood [sic] be correct.
Their environmental technologies unit is a diamond in the rough. They have been involved with clean air technologies for over 30 years now. Yet, it is hardly ever mentioned. The sales in this segment of their business are to the emissions control systems OEMs. As you pointed out, the use of GLW substrates and filters are being required by auto and diesel engine manufacturers in both the U.S. and Japan, following new environmental regulations and standards.
Three of their scientists received the 2003 National Medal of Technology for their invention of high-performance cellular ceramic substrates which will be used under the new regs. GLW’s enviro. tech. is the standard of choice by OEMs.
The environmental technlogies unit showed some weakness in Q1:2008, partly related to weakening heavy-duty diesel engine demand, and the slow economy in general. However, for reasons that you so adeptly fleshed out, I expect to see this portion of their business be a larger contributor to revenues in 2008.
Dawg, I urge you to take the headline tag off this post so Fly can enjoy his win in the headlines.
The weakness in Q1 of 2008 is likely because most companies bought their diesel vehicles in 2006-2007 to escape the increase in costs coming onboard from the emissions controls. Basically, the rushed to buy the last models with the less expensive environmental controls.
I expect that the slowdown of the economy, coupled with the above issues, may cause continued weakness. However, it is likely that it will be worked out over a year or so as companies will still have to purchase new diesel vehicles.
May 13th, 2008 at 5:49 pmLOL. The Fly is editor-at-large. He can make the call on the headline tag.
May 13th, 2008 at 5:56 pmcompanies that make other companies green I think can run. I have done very little research, but that will soon change.
One company I’m watching is CLHB. They process waste, which sounds like one of those sleepy boring stocks that end up running forever.
Good comment shed, good post Alpha.
May 13th, 2008 at 7:02 pmI like the company because it has “Corn” in its name.
May 14th, 2008 at 2:05 amDanny,
May 14th, 2008 at 10:49 amDAR is another interesting company that provides clean up services by processing animal byproducts and waste from butcher shops, restaurants, meat and poultry processors, grocery stores and the food service industry. It recycles and converts those products into useable oils and proteins for the ag industry and livestock food segment.
Danny,
Shed did a chart post yesterday or the day before on Capstone Turbine (cpst). Check it out.
May 14th, 2008 at 11:56 am