Universal Display Corp (NASDAQ:OLED)

CAPS Rating: 4 out of 5

Universal Display researches, develops, and sells organic light emitting diode (OLED) technologies and materials for the flat-panel display industry.


Player Avatar Andyman (94.56) Submitted: 10/17/2011 3:39:30 PM : Underperform Start Price: $48.06 OLED Score: +67.89

5 reasons PANL is overpriced at $51 a share:

1. PANL is selling at over 56 times its revenues over the last year. Most importantly, its deal with Samsung may not be as lucrative as first thought.

2. It has missed earnings estimates 5 of the last 12 quarters.

3. It has had negative cash flow each of the last four fiscal years at least and has lost $225M over its 15 years of existence.

4. PANL sells at 61 times forward earnings and 7 times book value.

5. It has run up over 100% over the last few months, despite not expecting any earnings in 2011 and losing 40 cents a share in FY2010.

Report this Post 4 Replies
Member Avatar TMFSymington (97.75) Submitted: 10/20/2011 4:49:00 PM
Recs: 1

...copied word for word from someone's post over @ Yahoo! Finance forums. Also worth noting that particular post took its details directly from a neagtively-biased article (see http://www.thestreetsweeper.org/undersurveillance/Universal_Display__PANL___Sharp_Rise__Fuzzy_Picture) written by a less-than-reliable/ethical source (see http://ajr.org/Article.asp?id=4911 ).

Tread carefully when you make these underperform calls based on sketchy information...those hatchet-job articles might be good to make a quick, dishonest buck, but I've learned not to take them seriously in the long run after seeing them proven wrong so many times.

You might've already guessed I'm holding a long position in PANL and, until someone definitively destroys my original investment thesis via some means other than speculative, fluffy lible, I'll continue to hold and enjoy the fruits of good homework. :-)

Member Avatar Andyman (94.56) Submitted: 10/21/2011 3:05:24 PM
Recs: 1

Actually, I copied it word for word from Seeking Alpha, which is probably where Yahoo! got it from, too. I'm not using the posts to make a buck, dishonest or otherwise. I'm just playing a game here, and I copy and paste to remind myself why I'm long or short.

Good luck.

Member Avatar TMFSymington (97.75) Submitted: 10/24/2011 10:50:18 AM
Recs: 1

Ahh, Seeking Alpha...I believe I read that article as well. In any case, it made many of the same points as the StreetSweeper article. This should be an interesting ride, anyway, and you could very well make some money (or points on CAPS) on the short side in the short term. I'd just be careful and watch it closely, though; it won't take much more good news to confirm the longs' investment thesis and destroy any short positions.

...and good luck to you as well. :-) We're all here to make a buck, and it hurts me to watch preventable losses materialize for anyone.

Member Avatar Andyman (94.56) Submitted: 11/20/2012 11:23:38 PM
Recs: 0

Neener, neener.

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