Universal Display's Shares Jumped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of OLED technology developer Universal Display (Nasdaq: PANL  ) are shining bright today, jumping as much as 15.8% on heavy volume.

So what: Korean electronics giant LG Electronics just announced an OLED-equipped smartphone, set for a European debut in mid-September. Not counting the brief appearance of OLED screens on the HTC Droid Incredible last year, the LG Optimus Sol becomes the only big-screen OLED smartphone on the market not stamped with the Samsung brand.

Now what: LG Mobile CEO Jong-Seok Park claims that the new model will "stand out from its competitors as the most affordable 1 GHz Android smartphone with an AMOLED display," though he didn't announce any kind of pricing. This news of a possible high-volume addition to the OLED family overpowered the potentially damaging assertion that Apple will hold off on OLED-equipped phones and TV sets until global manufacturing capacity on the technology catches up with Apple's high-volume demands. Then again, that's been obvious for a while, hasn't it?

Interested in more info on Universal Display? Add it to your watchlist.

Fool contributor Anders Bylund holds no position in any of the companies discussed here. The Motley Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of Universal Display and Apple. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.


Read/Post Comments (7) | Recommend This Article (13)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 22, 2011, at 2:20 PM, TMFZahrim wrote:

    LG had some help as I missed this little tidbit from Corning:

    http://www.democratandchronicle.com/article/20110822/BUSINES...

    The Fortune 500 company has developed a new glass for televisions that use the emerging organic light-emitting diode technology.

    CFO Jim Flaws: "No matter what the display is, we're going to provide a glass for it. ... we plan to sell glass (for) OLEDs as they become more important."

    Anders

  • Report this Comment On August 22, 2011, at 9:16 PM, aporeh wrote:

    Samsung has been outselling Apple's iPhone because of their OLED screen. Now, UDC is starting to get the attention it deserves - with most of the OLED patents (including flexible screens and inkjet printing - upheld in Europe) this company will be the make or break for Apple et al. So, with the clouds of the patent wars looming there is a good possibility that Google or perhaps Samsung will try to acquire UDC. Perhpas Google is realizing that Motorla's patents without the OLED IP will give it the ultimate edge. Tiime will tell. Meanwhile, UDC will probably go up to its previous al time high.

  • Report this Comment On August 23, 2011, at 11:23 AM, TMFSymington wrote:

    Are you sure the pops yesterday and today weren't due to the new longer-term agreement (FINALLY) signed between Samsung and Universal Display CorporatioN? While the LG phone news is great, I don't think it was the main reason why PANL is rising. Link below:

    http://online.wsj.com/article/SB1000142405311190346130457652...

  • Report this Comment On August 24, 2011, at 12:41 PM, werlingdervish wrote:

    PANL, up 40 % in two days, was in response to multiple news. PANL had been down almost 50% these last 3 months due to missing quarterly earnings and to an false article in the Korean Times that PANL had lost a couple key patent battles. The Samsung licensing agreement proved the Korean Times article incorrect. Recently PANL came in $.01 above consensus on quarterly earnings. A sustained 40% gain in stock value over three days can only be attributed to a fundamental restoration of confidence in the company and its patents. That is the much larger story here.

  • Report this Comment On August 24, 2011, at 3:23 PM, TMFZahrim wrote:

    @symie5, that announcement happened on Tuesday and this story was posted on Monday. Read more here:

    http://www.fool.com/investing/high-growth/2011/08/24/this-is...

    Anders

  • Report this Comment On August 24, 2011, at 10:22 PM, aporeh wrote:

    Hey TMFZahrim, I posted on 22nd before the news came out. Now that we know the reason for the 40% increase we also need to assess what is the value of the contract and whether UDC will be get more companies to sign (LG?) . In any case, this is is news I have been waiting for for the past 5 years (Since PANL was 7 and later after Jim Carmer said this company sucks....

  • Report this Comment On August 25, 2011, at 6:45 PM, TMFSymington wrote:

    @ Anders, thanks for the clarification (and for being more on top of the news)!

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