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 Universal Display (Nasdaq: PANL) surged more than 30% in early trading after news broke yesterday that Samsung had signed a six-and-a-half-year supplier contract with the company.

So what: For years, Samsung had been hedging its bets by signing only three-month extensions. Now, Universal Display can more confidently plan production of OLED technology for use in Samsung screens.

Now what: The deal is also apparently better. Rather than per-unit royalties -- a common risk-reducing measure in the early stages of a supplier relationship -- Universal Display will now be paid an upfront license fee. The implication? The company's OLED technology has proven itself. Don't be surprised if LG Display (NYSE: LPL) and peer manufacturers agree to similar terms. Do you agree? Would you buy at these levels? Weigh in using the comments box below.

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Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

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