Rob Citrone Cuts Back His Stake In Universal Display Corp. (OLED) to 8.7%

On January 26, Universal Display Corporation and LG Display, which is a leading innovator of display technologies, announced the signing of a new OLED Technology License Agreement and Supplemental Material Purchase Agreement. The license agreement stipulates that Universal Display granted LG Display non-exclusive license rights to manufacture and sell OLED display products. In turn, LG Display is set to pay Universal Display license fees and running royalties on its sales of these licensed products by 2022. It is quite clear that the market has already priced in this agreement, which has unlocked a very stable revenue stream for Universal Display.

Let’s now move on to another potential flourishing revenue stream for Universal Display. Apple Inc. (NASDAQ:AAPL) has launched its watch earlier this year, which is the first Apple device that uses an active-matrix organic light-emitting diode (AMOLED) screen, shifting from the LCD screens used in iPhones and iPods. Therefore, it is believed that Apple will use OLED displays for manufacturing its iPhones and iPads in the upcoming years, given the superiority of the OLED displays over LCDs. Universal Displays, as the leader in the OLEDs market, might eventually benefit quite a lot from Apple’s potential introduction of OLED screens to its iPhones and iPads. From the 700 hedge funds that we track, Eric Chen’s Antipodean Advisors is among the largest shareholders in Universal Display Corp. (NASDAQ:OLED), holding a stake of 509,000 shares, as of the end of March.

Disclosure: None