If you have a favorite stock that you think fits in with the spirit of the board, and you would like to tell us about it, please do. I’m looking primarily for MF recommended stocks that have slipped by me
I am thinking OLED. Turned profitable in the last year or so. Growing revenues at a fast rate. They have annual lump sum payments from Samsung in the 2nd quarter (next to report) and 4th quarter.
-For the first quarter of 2014, the Company reported net income of $4.0 million, $0.09 per diluted share, on revenues of $37.8 million. For the first quarter of 2013, the Company reported a net loss of $4.8 million, or $(0.10) per diluted share on revenues of $15.0 million.
-For the full year 2013, the Company reported revenues of $146.6 million, up 76% compared to revenues
of $83.2 million for 2012. Operating income rose to $38.2 million for the year, up 180% from
million in 2012. The Company reported net income of $74.1 million, or $1.59 per diluted share, for the
full year 2013, compared to net income of $9.7 million, or $0.21 per diluted share, for 2012.
They seem on the verge of tremendous spurt in growth. Samsung building out capacity for mid sized displays, LG making good progress on TV’s panels, a couple of manufacturers building out manufacturing capacity for lighting and flexible displays are on the move. All of these use OLED’s IP in AMOLED tech. Better looking, thinner, more energy efficient displays. Can be flexible and transparent too.
With all that seemingly imminent why is their share price dirt cheap? Concerns about IP protection, some patents are up in 2017 I believe. They are also constantly improving on those patents. There have been Seeking Alpha based short attacks over the last few years around this issue.
Another reason is possible loss of host material sales. My understanding of it is in an OLED display stack you have OLED emitters, OLED’s key IP, and you also have host materials which have no IP protection. OLED has been selling a lot of host materials but may be losing some of the share of that market.
Another reason for the cheap share price is because Samsung recently backed away from developing TV displays. Samsung’s tech was not getting anywhere near the yields LG is getting in manufacturing TV’s. Not noticed, apparently, is that Samsung and LG have a cross-licensing agreement so while LG is perfecting their manufacturing process for TV displays Samsung is putting its money into mid-size displays. Samsung can then lease the manufacturing process from LG. At least that is my understanding of it. I believe those are the things to look out for.
OLED is one of my largest positions. There are excellent posters on the RB OLED board and good coverage of CC notes and various conference notes by edyboom. Probably some people here could correct me if I am off base on anything I have stated. Thanks for reading.