Universal Display Shares Plunged: 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 Universal Display (NAS: PANL) fell more than 12% in early trading after multiple analysts said a sourcing agreement with Apple (NAS: AAPL) isn't imminent.

So what: Over the summer, Universal Display struck a deal with Samsung to supply OLED screens for its various devices. The agreement led to speculation that a deal with Apple would come to fruition at some point. Analysts at Canaccord Genuity and Cowen & Co. disagree.

Now what: So be it. Universal Display has plenty of potential non-Apple customers other than Samsung, Barron's quotes a Cowen analyst as saying in a research note. I agree; I'd also point out that LG Display (NYS: LPL) is a partner. Do you believe that's enough momentum? What do you expect from Universal Display's third-quarter earnings report, which is due tomorrow? Please weigh in using the comments box below.

Interested in more information about Universal Display? Add it to yourwatchlist.

At the time this article was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He owned shares of Apple at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.The Motley Fool owns shares of Apple.Motley Fool newsletter serviceshave recommended buying shares of Universal Display and Apple and creating a bull call spread position in Apple. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story