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To: slacker711 who wrote (1341)2/17/2012 1:56:39 PM
From: A.J. Mullen
   of 17948
Slacker's much better qualified to comment on theSeeking Alpha piece than I. It worried me, I can't deny it, but it seems a 'hit-piece.' Some of it doesn't make sense - clearly written in a hurry - it suggested the stock price went up when the forecast for OLEDS went down.

Are payments only biannual? I went back but couldn't find a transcript of te conference call. If the payments are biannual, are analysts assuming they are quarterly?

LG isn't using PANL's materials. That's no surprise. It would be nice if they were. Slacker has posted that WOLED is likely to need the phosphorescence patents even more than Samsung's RGB process because the filters used in the WOLED process reduces the light available.

Technical difficulties with green? Wasn't green the first color available from PANL? This seems to be a recycling of Cannacord's vague suggestion that there was quenching of materials used for red(?) by material used for green. The original suggestion seemed odd to me. In Samsung's RGB process the pixels for each color are discrete. Quenching seems more likely in the WOLED process. But we're told LG isn't using PANL's products.

Patents expiring? This is not news. A decent terminal value as part of a DCF model. Seems reasonable given that PANL's income is much more than royalties.

Patents being challenged? Again old news, much discussed on this board.

In summary, confusion regarding payments from Samsung seems the biggest concern here. Does anyone have access to the transcript. Do we think analysts were confused?


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To: A.J. Mullen who wrote (1342)2/17/2012 2:06:58 PM
From: A.J. Mullen
   of 17948
I found the transcript of the conference call. I don't know how it could have been any clearer:

Sid Rosenblatt

We the agreement has a annual fixed payment of which we get paid twice a year. And at this time, it will be whatever that payment is for the year and since we have payments in the third quarter and the fourth quarter, it is what we received in the third quarter and the fourth quarter of this year. For next year, it maybe a little lumpy, because we will account for it when we receive the payments, which are in second quarter and fourth quarter, unless it changes. But it will be straight-lined for the amount received in any given year.

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To: A.J. Mullen who wrote (1343)2/17/2012 2:15:25 PM
From: slacker711
   of 17948

The comment about the timing of the payments was complete FUD.

If they arent amortizing the payment, then the quarters will be lumpy, but who cares? The June quarter would be correspondingly higher.

The guy is saying that LG will use phosphorescent materials without paying PANL. I'll believe that when it happens. It's funny that he used an academic paper as proof when that paper extensively cited UDC's work on phosphorescent materials.


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From: IceHawk2/20/2012 10:29:29 AM
   of 17948
Samsung approves LCD spin-off; focus shifts to OLED

Summary: Samsung plans to spin-off its loss-making LCD business into a separate entity later this year, as it shifts its focus to OLED televisions.

Samsung’s board has moved closer to spinning off its loss-making LCD unit after its board of directors approved in majority a plan to spin off the business, the BBC reports.

From April 1st, Samsung will spin off the unit to create the Samsung Display Company Ltd., as an entirely separate entity. Shareholders have yet to approve the decision, however.

But the end of the road for the spin-off company is not being forecast yet, however. It is thought that it could eventually merge with the Samsung Mobile Display venture that makes OLED televisions, which use a fraction of the energy for a better output display.

While OLED devices were initially thought for the home television consumer market, such screens have been making their way to mobile phones and handheld devices.

The LCD television sector is expected to suffer an annual global sales decrease by 8 percent by 2015, reports Reuters, while OLED televisions could reach $20 billion by 2018, accounting for 16 percent of the market, up from 4 percent today.

The separate company will receive 750 billion won ($667 million) in capital, after the LCD division in its present form lost the same amount in operational costs last year.

Sony agreed to leave its LCD joint venture with Samsung in December last year, while Sharp halved its LCD output for the first quarter of this year. Sony, Sharp, and Panasonic, as the major players in the LCD business, expect to lose $17 billion this year alone.

While Samsung is the world’s largest television and flat-screen maker, an industry slowdown will likely hit profits further.

(via Reuters, BBC)

Samsung spins off LCD business for OLED push

Samsung has confirmed plans to spin off its LCD TV and monitor division into a distinct new company, Samsung Display.

Echoing its rival LG Electronics, which has been operating LG Display for its TV and monitor systems for quite some time, the secondary company will be formally launched on the 1st of April this year. "The spin-off will allow us to make quicker business decisions and respond to our clients' needs more swiftly", claimed Samsung's Donggun Park, current head of the company's LCD business unit and the man most likely to head up the spin-off company.

The new company will take control of all liquid-crystal display (LCD) products produced by the company. This includes standard and LED-backlit HDTVs, PC monitors and display panels for projectors, smarphones, cameras and tablets.

The move comes as consumer demand for LCD technology falls, while improved production methods and increased yields make it possible for companies to produce their own LCD panels quickly and easily. As a result, Samsung is seeing reduced demand and increased competition - a deadly combination.

The company won't be spinning off all of its display technologies, however: initial indications are that Samsung Display will concentrate on LCD-based technologies, while parent company Samsung will further develop its popular organic light-emitting diode (OLED) technology.

Currently used in the company's high-end smartphones, OLED panels offer several advantages over their LCD counterparts. As well as a lower power draw, an OLED display is thinner than an LCD while offering greatly increased brightness and contrast levels.

The cost and complexity of producing OLED panels has led to the technology being used only for small-scale devices like smartphones, however, but Samsung began showing off a 55in OLED HDTV at CES which it plans to launch commercially later this year. It's not the only one, however: rival LG announced a similar model of its own at the same show.

With Samsung betting heavily on OLED over LCD, the chances are good that its competitors will be watching closely to see if the gamble pays off.

Author: Gareth Halfacree

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From: slacker7112/21/2012 7:54:56 AM
   of 17948
Samsung Catching the OLED Wave, Spinning Off LCD Business

By Jennifer LeClaire
February 20, 2012 5:32PM

By making this move, analyst Rob Enderle said Samsung is essentially saying, "OLEDs are the cash cows of the future and LCDs are obsolete." Samsung is keeping the company on the cutting edge with OLEDs. "This move is kind of a nail in the coffin in LCDs," Enderle said, and it's quite a bit earlier than anybody would have thought.

Samsung Electronics is making a bold, competitive move in the TV space. The company plans to spin off its unprofitable LCD business into a newly formed subsidiary called Samsung Display Company. The company's focus will then shift from manufacturing LCD panels to OLED displays.
As Samsung sees it, an independent operation specializing in display panels will give its LCD business a better chance to grow. Samsung expects the move to strengthen it competitiveness by beating competitors to the OLED punch.

"Currently, the display market is undergoing rapid changes with OLED panels expected to fast replace LCD panels to become the mainstream," the company said in a statement. In light of this key change in the industry, Samsung said restructuring its display business will help improve its competitiveness.

The Rise of OLEDs

Samsung may have felt compelled to do something -- and fast. The cost of manufacturing LCD panels is overtaking the profits. Samsung posted an operating loss of nearly $900 million in its LCD business in 2011. DisplaySearch predicts the market for OLED TVs will hit $20 billion by 2018 while the LCD market will decline by 8 percent to $92 billion by 2015.

"Samsung is one of the companies driving this market. By making this move, they are saying OLEDs are the cash cows of the future and LCDs are obsolete. Samsung is keeping the company on the cutting edge with OLEDs," said Rob Enderle, principal analyst at The Enderle Group. "This move is kind of a nail in the coffin in LCDs and it's quite a bit earlier than anybody thought manufacturers would make this call."

LG caught attention in January when it showed off the world 's largest OLED TV panel at 55 inches. LG is betting its innovation will drive forward the popularity of OLED TVs by demonstrating a cost-effective working application of the technology for larger panel sizes.

"LG had the 55-inch OLED showcase and that was probably an early warning. Like Samsung, LG is also a Korean company and the Korean companies are very competitive with each other," Enderle said. "This could be a way for Samsung to steal some momentum from LG."

Disrupting the Market

In December, Samsung announced plans to acquire all of Sony's shares in S-LCD, a joint venture that manufactures LCD screens. Samsung will pay Sony $934 million for the assets. Under the terms of the deal, Samsung and Sony entered into a new strategic agreement that aims to increase the competitiveness of both companies. Specifically, Samsung will provide LCD panels for Sony televisions.

"Sony was the first to market with an OLED set. But the sets were very expensive and very small and they lost half of their brightness in the first year. That showcased the real weakness in OLED," Enderle said. "By spinning off this group and going with OLEDs, Samsung has leveled the playing field again, though now it's going to be a race. You could argue that Sony has more experience in the OLED space because they had product in market first."

Enderle said he would not have expected a market leader like Samsung to make such a bold move. He would rather expect Samsung to protect its market leadership in LCDs. By spinning out a new company, Samsung could put that market leadership at risk -- but it could also make Samsung the first in OLEDs.

"If Samsung guessed right, they are on a stronger path to corner this market," Enderle said. "In terms of risk, this is an unusual level for a company Samsung's size. This could within 24 months result in a major market disruptive."

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To: slacker711 who wrote (1346)2/21/2012 7:56:23 AM
From: slacker711
   of 17948
Commentary: Spin-off Samsung LCD unit may deter Taiwan makers in AMOLED segment

Rebecca Kuo, Tainan; Steve Shen, DIGITIMES [Tuesday 21 February 2012]
Samsung Electronics has announced plans to spin off its money-losing LCD business to form a new company, Samsung Display, which is believed to focus more on the development of OLED panels – a move which is expected to make the path more bumpy for Taiwan-based panel makers in the OLED segment.

In its statement, Samsung said that the new LCD company will consider adopting various restructuring measures including a merger with Samsung Mobile Display (SMD) and S-LCD. SMD is currently the world's largest maker of AMOLED panels.

While the planned spin-off is to take place on April 1, 2012, a merger between Samsung Display, SMD and S-LCD is likely to come in June.

In order to maintain Samsung's market leadership in the AMOLED segment, Samsung Display is likely to be steered by CEO of SMD after Samsung Display, SMD and S-LCD are incorporated into a single entity, some industry sources have indicated.

If so, Samsung Display will aim to make a turnaround by focusing on the production of high-margin AMOLEDs for large-size applications including TVs and tablet PCs.

The independent Samsung Display will also adopt new marketing and procurement strategies. It may push sales of panels to new clients in addition to its current clients including Samsung Electronics, Apple and Hewlett-Packard (HP), and therefore affecting sales of LG Display, AU Optronics (AUO), Chimei Innolux (CMI), Sharp, and even China-based panel makers.

There will also be a reshuffle of the members in the supply chain of Samsung Display, which could mean more orders for Taiwan-based display component suppliers. Samsung Electronics previously purchased LED chips from Epistar, touch panels from Young Fast Optoelectronics and J Touch, BLUs from Coretronic and Radiant Opto-Electronics, and IC parts from Novatek Microelectronics and MStar Semiconductor.

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From: slacker7112/21/2012 8:36:48 AM
   of 17948
[Exclusive] LG, Samsung to cut Chinese LCD plan

By Kim Yoo-chul

LG Display is cutting investment for LCD production in China in order to concentrate on the OLED business. Samsung Electronics is also moving in the same direction.

A glut is putting pressure on LG to migrate into more profitable displays.

``It doesn’t make any sense that LG is continuing to make big investments in its LCD-making facilities in China,’’ said a high-ranking LG executive, who is familiar with the situation.

“We have decided to halve investment in our China factory to less than 2 trillion won," he said asking not to be identified as he wasn't given the right to officially speak to the media.

``LG will invest more on OLED panels with the savings,’’ he said. He expects the same for Samsung Electronics.

LG is talking with several brokerages with the goal of borrowing up to $300 million to fund its OLED business, company sources said.
It plans to start its first LCD factory in southern China in 2014.

LG had planned to invest over 4.2 trillion won to construct an LCD plant. Gary Sohn, LG Display’s public relations official, declined to comment.

In Samsung’s case, the situation is not much different.

LCDs are no longer a cash cow because China is also shifting to OLEDs instead of serving as a buffer to absorb LCDs while Europe and the United States are also in transition.

Samsung had planned to invest around 3 trillion won for its LCD factory but Samsung officials say the amount will be cut by more than 30 percent.

For Samsung, however, building an OLED plant is not an option at the moment.

``We can’t construct an OLED panel-producing plant in China due to the risk of a technology leak,’’ said a Samsung official, adding that if it decides to build one, it would be on a slower track.

The firm terminated a joint flat-panel venture with Sony in a bid to rein in its manufacturing costs. Its display panel business swung to an operating loss of 750 billion won last year on revenue of about 29 trillion won, a slight drop from 2010.

``Profitability for our LCD business is eroding,’’ he said. Samsung spokesman Ken Noh declined to confirm whether it plans to slash its investment in China.

Still, forcing the hand of Korean technology firms is Beijing’s move to increase import duties on LCDs.

China is threatening to double the tariffs to 10 percent in the second quarter of this year, meaning the two firms as well as their competitors would have to build factories in China or face higher duties.

``If Beijing approves the tariff hike plan this time, a number of traditionally-strong LCD exporters to China including LG and Samsung would lose competitiveness in prices,’’ the Samsung official said.

Since 2010, China has emerged as the world’s biggest LCD TV market. Chinese LCD makers such as BOE and CSOT are already running advanced LCD panel lines.

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From: slacker7112/23/2012 8:52:28 AM
   of 17948
Universal Display price target raised to $60 from $45 at KeyBanc – 19 minutes ago

KeyBanc has increased confidence in Universal Displays prospects following checks in Korea. The firm sees upside to Universal Display's 2012 sales guidance and is increasingly bullish on OLED adoption and its ability to monetize its IP/patent portfolio. The firm expects management to raise or imply that recently issued guidance is conservative on February 28. Shares are Buy rated.

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To: slacker711 who wrote (1349)2/23/2012 3:37:47 PM
From: slacker711
   of 17948
KeyBanc Boosts Price Target on Universal Display (PANL) Following Talks with Korean Suppliers

February 23, 2012 9:36 AM EST
KeyBanc is reiterating its Buy rating on shares of Universal Display (NASDAQ: PANL) and is increasing its price target from $45 to $60 following meeting with several of the companies who supply PANL in Korea.

The firm notes they walk away from the meeting more confident in the company's near and long-term prospects and now sees even more upside to its 2012 sales guidance.

Market checks in Korea indicated LG and AUO are making solid progress with their OLED offering. This increases the firm's confidence in the both the timing of the OLED adoption and when PANL will begin signing long-term contracts with companies.

An analyst at KeyBanc comments, "With 1,200 OLED related patents issued or pending, key competitors we talked with acknowledged that they can’t legally commercialize phosphorescent emitter material. Even competitors who are publicly challenging PANL’s patents in Korea concede that there is little they can do over the next several years, even if the courts rule in their favor"

For FY11 and FY12, the firm forecasts EPS will total $0.00 and $0.66.

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To: slacker711 who wrote (1350)2/23/2012 3:59:27 PM
From: Savant
   of 17948
So, they're giving it a forward looking 90 p/e..and with a PEG of 1, that would peg the growth at 90%.

Time will tell.

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