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 ) popped today by as much as 18%, after the company was discussed at Columbia's Value Investing Conference.
So what: Universal Display was framed as a possible best idea pick at the conference, which is particularly notable, because most investors would consider UDC as anything but a value stock. Shares trade at 147 times earnings and 17.5 times sales, well into growth territory.
Now what: The discussion led to hopes that UDC could become the "Qualcomm of OLED," with its broad patent portfolio, much like how Qualcomm extracts royalties on virtually every smartphone sold. The portfolio could be undervalued at current prices. Presentations at investing conferences have been known to move stocks in the past, and that was the case today for Universal Display, even though there was no official news out from the company.
More Expert Advice from The Motley Fool
Universal Display has a powerful patent portfolio behind OLEDs, a technology poised to dominate the displays of the future. Its placement at the center of OLEDs makes the company an underappreciated way to play the enormous sales growth in tablets and smartphones. However, like any new technology, there are plenty of risks to Universal Display. Motley Fool analyst Evan Niu, CFA, has authored a new premium report that dives into reasons to buy the company as well as the challenges facing it. For access to this comprehensive report, simply click here now.
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