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SID and LG Display Wrap -6

11:53 30-May-17


In my eyes, Display Week put the wrap on the opportunity in LPL.  Shares are up above $14.50 this morning on news now starting to spread across western sites, that LG Display will begin prioritizing mobile AMOLED displays above televisions in next year's new production lines.  What they are missing is the reason for this decision.  Last week, BOE showed the world's first a emissive QLED prototypes at SID.  Although the screens were fairly low resolution and only 5 and 14 inches, they were produced entirely via inkjet.  That in turn supports the 3 to 5 year window of opportunity I've always seen for LGD's AMOLED TV monopoly, and now it seems that management agrees.

It's fairly surprising that a Chinese company is demonstrating this, rather than a Korean one.  This is the writing on the wall, as far as I'm concerned, and I think this morning's price movement is a complete misread.  Though stocks often run higher than I think they should, I'll be discontinuing any long positions in LPL.  Coverage will probably be minimal from here on out, and that section of the website will eventually go public the way of INVN did, though not in the next month or so.