Chance to buy OLED

I have mentioned this stock before and I believe that this may be a good opp for someone to start a position due to a significant drop. OLED manufactures best in class displays which are being increasing adopted on all electronic display devices and will soon be seen in the lighting business also. Its a secular growth potential and there is little other mature competition in the near future that can be a threat though a lot is bandied around.

The revenue growth projections for next year are muted and yes its not predictable as you can see below hence the drop and but it will grow and double revenue in next 2 - 3 years by 2020 and that would mean almost 30+ compound growth and earnings will almost double every year as most of it falls into the bottom line .

2013 revenue - 146M
2014 - 191M
2015 - 191M
2016 - 198M
2017 - 335M
2018 - 350-380M (estimate)
2019 - 502.5M (extrapolated from capacity expansions and growth projections)
2020 - 800M (extrapolated)

With an Operating margin of close to 50% the earnings could reach close to 400m making the PE also incredible when you look forward.

Rajesh

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I don’t know. My initial impression is that they are expecting some significant slow down this year as you show from their guidance. While long term thesis is still great I have a feeling that for most of this year the stock won’t do much. So it’ll be dead money. I have a small position that I don’t intend on selling but there are too many really great places to put new money I think.

It’d be good to watch though because of further industry adoption or if returns from the OLED manufacturing buildout start happening sooner then they could have some big surprises.

Darth

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