gotta love the last paragraph..."market observers" don't think it necessarily indicates that Apple will consider it for iPhones etc. contrary to what "some analysts" have speculated...so who is more credible...a "market observer" or "some analysts"...?
Bottom line is that Apple will have no choice but to move to OLED panels for their phones since flexibility/durability and the ability to create new form-factors will force their hand...we all knew that the iPhone6 would not have OLED, but if it takes 2 more years before the iPhone7 comes out, we can be sure that THAT phone will have an OLED screen, since by that time there will be enough capacity to supply Apple.
Eclipse; not sure why it matters if you are long or short...in my mind there is only one "risk" worth talking about, and I personally believe it to be a "perceived" risk, rather that a real one....and it is the reason why the stock of a company that has both the historical as well as prospective growth demonstrated by UDC continues to sell as if it has little growth...and I also believe that it is the reason why the short interest remains high, regardless of the drum beat of positive news we have received for the last 6 months (and longer). That is the risk of a so-called "patent cliff" that occurs in late 2017 when some of the basic architecture patents that UDC owns do in fact expire. The bears will have you believe that UDC's entire business expires with it. If you believe what mgt has said, the SMD agreement expiration date had everything to do with the planning horizon of SMD and NOTHING to do with the expiration of patents...yet the bears think there is a correlation. What I believe (and public commentary from UDC mgt confirms) is that virtually every "product" (ie emitters and host) that UDC sells today, has patent protection through the early 2020's if not the end of that decade (for example the new green emitter that SMD is using has patent protection through 2029).
There are 2 ways for this perceived risk to be debunked: 1) We can wait until 2018 comes around, and see what happens to UDC revenue. or 2) UDC signs a long term agreement with a major OEM (like LG) that runs well through the "cliff" period, proving to the market that an entity that has virtually unlimited resources (ie LG) believes that nothing will change in 2018
To me the biggest risk is NOT owning OLED when that announcement comes...and it will come in the short term given all the public proclamations by LG vis a vis OLED TV production/profitablity.
I agree, but I think that the first game they will conquer will be on the lighting side. If you have a pixel here or there that doesn't light properly on a TV panel, the whole panel is junk; whereas the same "flaw" might be undetectable in a lighting panel. Plus, even if everyone in the world wanted a 55" OLED TV that would still be less m2 than if OLED lighting panels could roll out of an ink jet system....and since they are selling machines, they should want to attack the market with the demand for the most machines...lightling..
While everyone knows that Samsung Electronics (SME) was experiencing a slow down in their high end smartphone business, what we did NOT know, is whether Samsung DISPLAY (SMD) would be able to find other customers to ensure that they could continue to run their OLED fabs full out...So in the past few days we have seen a new Motorola phone and today, a new tablet from Dell. And now we have super-salesman Michael Dell touting the superiority of OLED technology. Bottom line; SMD will be able to sell as many OLED panels as they can produce (after the small hiccup in late Q2/earlyQ3) and the demand from LG will be additive, not substitutive...
from an SEC perspective, it would have to go like this: UDC agrees (in concept) to adjust the purchase price back to July 1. In other words, IF (and WHEN) LG were to sign the agreement that has been proffered by UDC (maybe it was written on July 10th) , then the pricing would be effective at the beginning of the Q...but LG hasn't quite signed it yet...nobody knows what the hang-up is ;) since (after years of negotiation) the terms have been agreed to...but still LG sits on it....UDC can't "announce" a deal, when it hasn't been signed yet...so everybody gets what they want...UDC gets the deal; LG gets the pricing to start on July 1, and LGs customer (whoever that might be) gets to announce a few new products without the world receiving details about it through a contract signing (and SEC information needs) prior to today...I mean the big announcement day (whenever that occurs)...
Thinking out loud....is it possible that in Apple's desire for secrecy that they discouraged LG from consummating a long term agreement with UDC until AFTER the iWatch was released? In other words, could a LT agreement be on the short term horizon?
I have a more simple request...that I may purchase the 10 millionth 77" OLED TV built by LG...one that flexes at the touch of a button....and may that purchase take place in 2016...if that comes to pass then perhaps I can own a fleet of G-5s as well...(all outfitted with OLED TVs throughout the cabin)
yes DCA...I think this is big news...as it seems to "confirm" that the iWatch will be part of the 9/9 event...and that Apple has something truly unique in the wearables market. Also, on the assumption that the iWatch will be OLED and that it will be produced by LG, I think it will also accelerate the need for LG to sign a long-term agreement with UDC...and for all the patent nay-sayers out there...a LT agreement that runs through the so-called patent cliff will be the last leg of the short story to fall...
finally found the related article (and imbedded video) "LG Flaunts Flexible 4K OLED TV"...to me, this will be the way to go; bendable for those who want it curved (ie when you are watching it) but flat against the wall when it is not being watched. After all if it is razor thin, but sticks out from the wall, then part of the "thin-ness" attraction is lost!
where does it say that it "curves at the press of a button"....I think THAT is a cool feature!
my first plasma (a Pioneer that I think I paid over $3k for) had a separate box and there were only two wires coming out of it...power cable, and a special cable that ran between the TV and the box...makes much more sense than having to plug HDMI cables into the TV whenever you want to add something. Back then, we thought we might even be able to eliminate the cable box by installing a "card" (cant remember the name of the cards) but the cable companies nixed that idea (they want their $8/month/box). TV guys should be moving towards thin/flat(not curved) with as few wires as possible...IMHO
I agree...I wonder what % of people hang their flat screen vs keep it on a stand. If it stays on a stand, then curved probably works really well, since you can subtly shift it to be in the exact middle of your viewing area. But I would imagine that the majority of people with a 55+ TV want to hang it on the wall...and if its up there and not on, you don't want to notice it (and you will if it is curved). Longer term, however, the combination of curved and flexible will be the key...flat when you want it flat, and then you can "bend" it when you want it curved...
Bottom line, if they offer a 65" non-curved version, I would pay up for it!
here is a quote back in June from Rich: OLED "is still $25, going to the teens soon"...so the stock is up a mere 48% from then...and now he wants to declare victory since it didn't hold its high, but yet was up over 6% in a down tape...that short must be squeezing the round ones pretty good...
obviously if the iWatch gets huge buzz, the implications for UDC should be great (at least in terms of perception)
When you buy LUK you are buying a bunch of businesses at book value (or less) with very savvy management at the helm...and they have a lot of dry powder...the will not be promotional, but they will be patient...
Sentiment: Strong Buy
can we at least call the company by the right name? its UD "C" (which stands for corporation by the way...so it should be easy to remember)