Universal Display Corp Board less than impressive. $OLED

Much controversy about Universal Display Corporation. Huge shouting match of the loud and rude variety is underway.

The company offers the promise of exciting breakthroughs in lighting technology. Apologies to scientists for a pedestrian explanation but if it pans out its a big thing.

When companies go into warp speed and reach the next level they typically beef up the board and load in excellent talent with experience and gravitas.

The current board composition is unimpressive. The independent directors do not bring a wealth of experience to the table. A snap shot of a few independent leads to these comments:

Leonard Becker age 89 is a real estate wheeler-dealer. Other than buying lighting for his real estate projects what is he bringing to the table.

Elizabeth Gemmill age 67 has a history of non-profit boards. Very noble but this is a business. I want to see the money.

C Keith Hartley age 70 is a Wall Street wheeler-dealer. But there is no history of connections that can be leveraged. Sort of looks good to have a Wall Streeter on the board. But not enough catalyst to propel the company forward.

Lawrence Lacerte age 60 who has a background as a wheeler-dealer in tech and internet ventures.

None of the four independent directors has ever played at the level Universal Display is at or claims its going to. Time for a governance rethink. If you do not see this board changing soon you will know that management is comfortable with a captures board who does not ask tough questions.

In short they will not be able to go to the next level.

George Gutowski writes from a caveat emptor perspective.

Universal Display Corp $OLED Short Raid Underway? Asensio Not a believer.

Universal Display Corporation UDC (Nasdaq:OLED) has caught the ire of Asensio. Asensio is known as the King of the Shorts who does his homework before he takes the kill shot. Trigger has been pulled.

Universal Display is engaged in research of Organic Light Emitting Diodes or OLED and has major contracts/relationships with Samsung and Philips.

Asensio has called the arrangements into question and by way of executive summary has concluded the emperor wears no clothes.

Just take a look at the short position history. Several months ago there were approximately 10 million shares short. The position has been covered down to about 8 million. Days to cover fluctuates widely because the underlying trading volume fluctuates wildly.

Q3 results are a surprise loss and management does seem to be tap dancing around some of the issues. Oh while you’re thinking about things it has a 76 PE ratio. so pardon the short community for acting like sharks with blood on the water.

Management could clear this up very easily with an analyst call and or and analyst day and just explain everything. But somehow they do not see the need for clearer communication.

Canaccord Capital who have a pretty savvy reputation have issued a research report calling UDC into question.

Oh and the SEC is investigating UDC’s treatment of Samsung revenues. Always comforting to see the SEC poking around because the story is not believable.

The set  up seems to be cataclysmic in the making. when this resolves it will result in a major move. If its nothing a 75 PE ratio will be called into question at best. If the emperor has no clothes the shorts win and the stock crashes and crashes.

Sort of like watching a heavy weight bout for about eight rounds. Then one fighter starts to buckle and goes down. All 15 rounds never get fought.

George Gutowski writes from a caveat emptor perspective.