Universal Display (PANL) Slammed as Samsung Deal Seriously Questioned
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Get Alerts PANL Hot Sheet
Price: $7.42 -0.27%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.2%
EPS Growth %: +1,700.0%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.2%
EPS Growth %: +1,700.0%
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Shares of Universal Display Corp. (Nasdaq: PANL) are under heavy pressure early Monday following a write-up at theStreetSweeper.org, which highlights the important Samsung deal in a negative light.
While analysts and other bullish followers expected a jump in the Samsung royalty rate under a renegotiated deal, the company ultimately revealed it "would no longer receive royalty payments from the giant cell phone maker at all." The new contract shows that PANL will receive a "mere “license fee” from Samsung – rather than royalties based on actual sales of products using its patented technology – and (unspecified) revenue from chemical sales to the giant electronics company going forward."
"In other words, that contract indicates, PANL may never capitalize on the popularity of Samsung smart phones featuring the Organic Light Emitting Diode (OLED) technology that has long been viewed as the key to its own future success."
Read the full report here
While analysts and other bullish followers expected a jump in the Samsung royalty rate under a renegotiated deal, the company ultimately revealed it "would no longer receive royalty payments from the giant cell phone maker at all." The new contract shows that PANL will receive a "mere “license fee” from Samsung – rather than royalties based on actual sales of products using its patented technology – and (unspecified) revenue from chemical sales to the giant electronics company going forward."
"In other words, that contract indicates, PANL may never capitalize on the popularity of Samsung smart phones featuring the Organic Light Emitting Diode (OLED) technology that has long been viewed as the key to its own future success."
Read the full report here
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