3 Buyouts That Should Happen Today

• Report this Comment On May 25, 2011, at 7:23 PM, janericcarl wrote:

  Travis,

  Where did you come up with the info that XOM is trying to buy CLNE? Or is this just wishful thinking?

• Report this Comment On May 25, 2011, at 7:42 PM, encendere wrote:

  I own CLNE and I don't WANT a buyout... I fully expect returns > 400% over 10 years.

• Report this Comment On May 25, 2011, at 11:33 PM, sufferingproust wrote:

  This is the second Motley fool post about Universal Display (Nasdaq: PANL ) that makes very little sense outside of the hypothetical or thinking out loud. While the possible buyout of such a company could always be a possibility there are several factors currently in play that would suggest this is highly unlikely especially from Sony (NYSE: SNE ).

  Regaurding a buyout; The attention from insitutional investors has been staggering lately. The underwritting for the SPO was conducted by Goldman Sachs and just in that offering the major positions have changed as follows.

  Institutional Holdings Jumped to the highest level ever to 63% of shares.

  Of worthy note, New and Increased positions include:

  Fidelity increased 15.47%

  Discovery Captital NEW 2.137,850 shares

  Vanguard 1,835,084 shares increased 27.43%

  alliancebernstein 723,482 shares increased 1000%

  HHR asset NEW 819,000 shares

  Neuberger Berman 554,845 shares 363% increased

  oppenheimer funds 300,870 shares 1000% increased

  The aformentioned indicates the major players see a large amount of value that would be short changed in the event the company was absorbed into a large OEM. This is why a buyout is unlikely.

  In regaurds to Sony (NYSE: SNE ) being the company that buys Universal Display (Nasdaq: PANL ) there is zero chance and this is why. The only reason an OEM would buy Universal Display (Nasdaq: PANL ) is so they could conduct R&D and manufacture under the same roof without the complications of contracts and expenses associated with royalty and lisencing fees. For said senario to be viable the OEM would need manufacturing infastructure in place to hedge against loosing market share for the technology. Sony (NYSE: SNE ) currently does not have this and at the same time has reduced the amount of cash they are putting towards LCD so this would be a financial nightmire for them. However the most obvious reason Sony (NYSE: SNE ) would bever buy Universal Display (Nasdaq: PANL ) is because their number one customer would be their number one rival, Samsung Electronics Co., Ltd.. This would undoubtedly result in impossible negotiations and market posturing. If any company ever buys out Universal Display (Nasdaq: PANL ) it will be Samsung Electronics Co., Ltd. because they already have 10 billion dollars in manufacturing infastructure and are gaining huge ground in the smart phone market.

  I am personally shocked for the second time that Motley Fool has produced an article that is not only shortsighted but obviously ignorant to any of the factors weighing on the display market specifically AMOLED/OEM relationships. Again, you are bett than this.

• Report this Comment On May 26, 2011, at 8:55 AM, mvguzik wrote:

  3M's Strategy for Acquisitions includes paying a good price and Align would be an expensive purchase and a lot of Goodwill to overcome in integration. As a shareholder I would prefer they pass on Align.

• Report this Comment On May 26, 2011, at 4:54 PM, sidneyleejohnson wrote:

  Given a display search estimate of 140% CAGR for oled over the next 5-10 years. Why on earth would panl investors or management want to sell now? After 11 years of R&D, and an exponential growth curve ahead of them along with green adoption and the first 5.5 gen plant online I fail to see why anyone in their right mind would be remotely interested in selling at any silly 10-25% premium. I would hope that the passive fund managers would not just rubber stamp such an offer(as can happen if their ownership increases too high). We can only hope management hasn't toiled for the last 11 years just to give it up so quickly. Whats the point of raising 350 million dollars just to turn around and be acquired. I see little chance of an amicable buyout given a 140% CAGR looking forward. It would be hostile and it would have to somehow lock the quick buck money mangers who have only a quarterly report quota in mind. A buy out would be a PANL investor's worst nightmare. We haven't been in this for the last decade to see it go before the real adventure begins(laptops, TV, lighting, RGB1B2,wearable displays, etc).

• Report this Comment On May 26, 2011, at 4:57 PM, sidneyleejohnson wrote:

  I would add that the author has failed to gather a sense of sentiment from individual investors about the prospects for their investment over the long run. Every investor I've known speaks of this being their home run stock for their retirement ala Schwab, Microsoft, Cisco, Dell, Apple companies were to their investors. Its a matter of reasonably short time before oled explodes onto the scene all around us. When the Growth curve comes closer to the other side of the S yes then maybe its time to sell out but until then most investors want to be riding the rocket not see it glued onto to some giant amoeba.

• Report this Comment On May 26, 2011, at 5:52 PM, sidneyleejohnson wrote:

  and a final thought recently companies have been choosing to remain private while in their exponential growth phases and then go public at the end. Examples like Zynga and Facebook where the owners try to stay private as long as they can to capture the growth rates. I can't fathom why PANL management would want to see another company steal away the window of exponential growth without a VERY VERY VERY high premium to offset this potential. Yes you could argue the stock already reflects some of this growth but most anlaysts going out 3-5 years have much much higher stock price in mind.

• Report this Comment On May 27, 2011, at 2:48 PM, pdoherty972 wrote:

  I agree with the dissenting opinions above. There is no reason any PANL shareholder should accept less than $200 a share (or more) for a buyout. OLED is the next wave of displays AND lighting and when's the last time a technology did that? Oh right, NEVER.

• Report this Comment On June 05, 2011, at 9:43 AM, dgrud wrote:

  How about SDRL buying OII.

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