Bryan Kloster sends: Universal Display Corporation (PANL), is a leading OLED developer. OLED, or organic light emitting diode, represents the future of display technology. With a diverse portfolio of patents for screens, they “promise to bring color to flat panel displays in ways previously unimagined.” These screens are not only visually aesthetic and vibrant but are also as thin a few sheets of paper and can be mutated to fit different shapes, still retaining sharp image technology. Flat Panel displays have been hot the past Christmas seasons, and as a new one approaches, it is time to examine companies such as PANL.
[You may need to scroll down to see the chart]

Universal Display’s technology certainly surpasses the quality of current technologies like plasma and LCD. The application for hardware of the caliber of OLED is unimaginable. Shirts with moving images, walls with TV’s that can bend around corners, screens as thin as paper, and more? PANL either holds outright or co-owns 800 OLED patents. Their main customer is Samsung SDI as of mid-year 2007. The next year for Universal Display will be crucial in dictating their success. I see their technology surpassing all other contenders. The OLED market is in its pubescent stages, but only time will tell as to whether OLED’s are the future or if the industry is heading in an unforeseeable direction.

PANL is a buy for those looking for a high-risk, speculative stock with a great growth story. I recommend easing your way into the stock, as it has been volatile; be patient and look for a pullback. I see PANL at $30+ dollars this time next year, especially if PANL decides to begin entering the civilian market (they currently count a $2 million Army project as a primary source of revenue). I do not see their technology emerging simply by itself, but would rather see a company like Sony or Samsung share rights to the technology with PANL to avoid the “Betamax” risk, which is that a superior technology is not adopted because of entrenched interests. These companies already are well-established and offer access to an instant customer base, in addition to having a reputation for quality that would take years for PANL to develop - something they do not (and should not) have the inclination to wait around doing. OLED’s are the future and full industry immersion will take time, but PANL right now can put you in on the ground floor of a great growth story.

Subscribe to our feed:

Disclosure: No position.