So what’s the best way to play the trend?
On one hand, you could buy shares of Apple as they currently trade more than 30% off their 52-week highs. Though the debate continues to rage over whether the stock has further to fall, introducing a series of revolutionary products with bendy, see-through, indestructible screens could be just what the doctor ordered to re-energize its shares. In addition, even if Apple’s OLED adoption isn’t yet on the horizon, the fact remains it consistently generates boatloads of cash and looks undeniably cheap at less than 11 times trailing earnings. After everything is said and done, you could also get paid for your patience as you wait for Apple’s shares to rebound by collecting its 2.3% dividend.
On the other hand, if you’re searching for a derivative play, look no further than Universal Display, whose OLED patents practically ensure it will profit no matter who uses the technology. Even if Apple doesn’t join the OLED race anytime soon, Universal Display investors are eagerly anticipating a new wave of profits from the coming introduction of large-screen OLED televisions from Samsung, LG, Sony Corporation (ADR) (NYSE:SNE), and Panasonic Corporation (ADR) (NYSE:PC). Given the increasingly likely event that Apple does jump on board, however, Universal Display will be first in line to benefit.
The article Is Apple’s Secret OLED Hire a Game Changer? originally appeared on Fool.com and is written by Steve Symington.
Fool contributor Steve Symington owns shares of Universal Display. The Motley Fool recommends Apple, Goldman Sachs, and Universal Display. The Motley Fool owns shares of Apple and Universal Display.
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