Gabelli Discusses Details of Universal Display's (PANL) Agreement with Samsung Mobile Display

Shares of Universal Display (Nasdaq: PANL) are giving back gains Monday afternoon amid a Form 8-K filing after the close Friday. The stock initially traded nearly 6 percent higher this morning, however is now down about 2 percent to $50.66.

In the SEC filing, Universal Display offered details of its recent organic LED supply agreement with Samsung. Shares of Universal Display have rallied about 42 percent since the news was announced.

Gabelli's Hendi Susanto, a recent bull on shares of Universal Display, responded with a note Monday. Below are the highlights of the 8-K according to Susanto.

• "This is the announcement of the adoption of green emitter materials that we have been waiting for. The addition of green emitter materials and potentially green host materials can double Universal Display commercial materials revenue..."
  
  
• Samsung Mobile Display (SMD) will have license rights to future patents;
  
  
• SMD has no rights to make OLED materials.
  
  
• SMD and affiliates will have no right to assist in a patent challenge against Universal Display.
  
  
• The fee payment will begin this year, however no details of the amount were offered.
  
  
• SMD is preparing to launch new AMOLED displays using PANL’s green and red materials
  
  
• The fact that there will be a minimum purchase commitment was disclosed, however not actual numbers were offered.
  
  "If SMD reaches the aggregate minimum purchase commitment in a given year, SMD will be deemed to have fulfilled its aggregate minimum purchase commitment obligation."

Gabelli's Susanto maintains a Buy rating on Universal Display shares.

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