Universal Display: A Stock with Big Potential

| About: Universal Display (OLED)

Universal Display Corp. (NASDAQ:PANL) could be a good takeover candidate as the potential of OLED is just too huge for giant tech companies to ignore.

Samsung Mobile Display, a venture of Samsung Electronics, said on Sunday the global smart phone market was expected to grow to 500 million units in 2012 from 170 million in 2009 (huge for RIMM and AAPL). Smart phones would account for 29 per cent of the entire mobile phone market in 2012, compared with 14 per cent in 2009, Samsung Mobile Display predicted. It said growing smart phone sales and touchscreen adoptions would boost sales of organic light-emitting diode ((NASDAQ:OLED)) displays, a small but fast-growing display segment.

Samsung says OLED displays will become all the rage with an estimated 50 percent market share in the next five years on all mobile devices, including but not limited to mobile phones, PMPs, GPS navigation units and digital cameras. With over $150M invested in OLED research over the past decade, Universal Display (PANL) has built a strong worldwide patent portfolio. With over 940 patents issued and pending worldwide, its portfolio is one of the largest in the OLED field. Universal Display has entered into more than 30 business agreements with manufacturers in Japan, Korea, Taiwan, China and the U.S. These partnerships include companies such as Chi Mei EL, DuPont Displays, Konica Minolta, LG Display, Samsung SMD, Seiko Epson, Sony (NYSE:SNE), Tohoku Pioneer and Toyota Industries.

Disclosure: Long PANL.