Universal Display Shares Surged: What You Need to Know
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 OLED technology developer Universal Diplay (NAS: PANL) jumped as much as 11.5% in intraday trading on heavy volume.
So what: This, my friend, is a momentum move of the purest kind. Universal Display had jumped more than 10% on threeout of fourtrading days this week, all on reasonably substantial news, and now investors are piling on to ride this just-discovered bandwagon. All told, share prices have spiked by nearly 90% this week.
Now what: To recap this week's action, Universal Display presented an important license deal with top customer Samsung, saw LG Electronics introduce a high-volume OLED smartphone, and heard Corning (NYS: GLW) commit to producing glass for big-screen OLED televisions. The stock still has some way to go before eclipsing the 52-week highs in the mid-$60 range, but it looks like OLED is getting its place in the sun. Keep in mind, dear investor, that broad market swoons are unlikely to make a real difference in Universal Display's fortunes at this point, because Samsung and LG can't make these screens fast enough to keep up with demand.
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At the time this article was published Fool contributor Anders Bylund holds no position in any of the companies discussed here. Motley Fool newsletter services have recommended buying shares of Universal Display and Corning. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.