Are there any opinions on the Seeking Alpha article by Liam Mulcahy on 6/30/11 regarding Universal Display Corp's valuation and the OLED market potential? I have been a PANL investor and cheerleader since 1998 and currently own several thousand shares. Maybe naive in my expectations of future value of the company going forward - it was to be the last stock I ever intended to liquidate - but I have had my faith shaken with recent patent invalidation reports and the stock price nosedive in recent weeks. I realize the $63 price it hit was probably emotionally inflated and I plan to hang on at least through the next earnings call, which I expect to be favorable.
It is hard to find any discussion of the patent challenges other than the Japan case and the potential case in Korea. Is UDC taking the Japan decision to appeal? Are there other challenges in the works? And how do these decisions affect future revenues? The bulk of OLED materials and products production will be in Asia, so these patent challenges, to me, appear to be critical.
The slam on the OLED market in general presented in this article was also unsettling, given the advantages this technology offers and the fact that Samsung, LG, and others have invested billions into increasing production of OLED and AMOLED panels.
I don't see this stock retreating to $10 a share. I am hoping a favorable Q2 earnings call will move it up a bit. More expert commentary would be appreciated.