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AUO dividend official and more +2
AU Optronics has officially declared its dividend. Shareholders
who own AUO before the ex-date of July 7th will receive 10.858
cents per ADR. That's a 3.74% yield, at current prices.
As mentioned yesterday, AU's re-entry
into solar represents another wild card for real share
growth, to go with a potential display investment from Apple. So
far I've seen no word on the cost of these solar panels, and that
will, of course, be critical.
On the display side, it's quite possible that the end goal will
not be purely AMOLED in nature. AU was probably the first to
develop and market hybrid screens and these are seeing more and
Development typically occurs collaboratively in distinct
geographical areas, and my guess is that Taiwan still leads by a
broad margin. AU management has maintained a very cautious public
stance on AMOLED production and the latest is that Nanoco is finally
inkng supply deals in Taiwan for its cadmium-free quantum dot
material, which is produced by Dow Chemical.
Although the Nanoco trades natively on the London Stock Exchange
as NANO, and OTC in the U.S. under the symbol NNOCF, I do NOT
recommend it, except perhaps as a hedge on LPL. LG evaluated
the technology one and a half years ago, and we know the path it
chose. Word is that Samsung has not been able to make it cost
competitive, though that could always change.
Thus, I think LG Display's television strategy is safe and on
track. My only concern, for LPL investors, is the one I voiced
in conjunction with the last UDC report: that LG Group is using
internal accounting to depress the internal sales price of panels
from LG Display to LG Electronics in order t lower royalty
payments. I can't yet say for sure that such a scheme is
happening at all. If it is, it could be only be temporary measure
during the build out, and I would NOT expect it to extend to third
party sales in any case. Nonetheless, this and experience
regarding production expansion are the primary reasons I keep
saying LPL will require a great deal of patience.