Outlook '08: Through The Looking Glass


With 18 days left in 2007, it seems that the prospects for 2008 are getting bleaker by the day. Consumers are coming under pressure from the falling value of their homes and the Federal Reserve is desperately trying to unlock a lending freeze in the financial markets. Meanwhile, economists are putting the chances of a recession at the highest in more than three years.

But is the outlook really that grim? What do the captains of industry on the ground have to say? We'll try to find out from here to the end of the year, as we talk with leaders of industries from technology to banking to railroads to get the true state of the financial union.

Corning (GLW) Chief Financial Officer Jim Flaws joins the panel for this conversation. Following is a synopsis of his main points.

What are you doing right?

"We have the largest market shares for LCD glass around the world," says Flaws, "and we are the leader by far. And LCD TV’s are trouncing plasma this holiday season."

What about the fragile consumer?

"We’re not seeing it," he replies. "The consumer has not pulled back on LCD televisions... but we’re obviously keeping our eye on a recession."

What about notebook computers?

"Notebooks have been a big positive surprise," says Flaws. "They’re growing far faster than freestanding PC desktops. And we think notebooks become disposable. They don’t last forever, so we sell more glass down the road."

Are you adding momentum?

"We feel it on LCD," says Flaws. "For next year we have customers who have agreed with us on pricing and contracts for most of the year. We anticipate the demand for panels and glass is going to be tight. So we feel we have good momentum going into the new year."

He adds, "Our overall demand for glass is up just over 40%. That’s coming in both TV’s and notebooks."

Dylan Ratigan asks the traders what they think of this stock?

The traders are positive.

Outlook '08: Through The Looking Glass

Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! Prefer to keep it between us? You can still send questions and comments to fastmoney@cnbc.com.

Trader disclosure: On Dec. 13, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (SWY), (INTC), (EMC), (YHOO), (ATVI); Najarian Owns (BIIB), Najarian Owns (BSC) Options, (GOOG) Options, (TGT) Options, (XMSR) Options, (YHOO) Options; Finerman's Firm Owns (GS), (WMT); Finerman's Firm Is Short (IWM), (IYR), (SPY), (IJR), (MBI); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm Is Short (MDY) And Owns (MDY) Puts; Finerman's Firm Owns (MSFT) Options; Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts