Tag Archives: LPL

Top 5 Medical Stocks To Watch For 2018

November is typically open enrollment time for millions who gethealth insurance, disability insurance and other benefits from an employer. If youre one of them, among your important choices is whether you want a flexible spending account and how much money to deposit.

FSAs are available through some employers as a part of benefits packages. You can spend FSA money only on qualified medical expenses, which are determined by the IRS. The money comes out of your paycheck pretax, in regular increments. The full amount you pick is available at the beginning of the year, so if you have big health care expenses in the early months, your total FSA money is already accessible.

Unlike a health savings account, where the money you add is yours forever, the money in an FSA is use or lose. Any leftover money goes back to the owner of the plan, most likely your employer, to offset administrative expenses, says Jody Dietel, chief compliance officer at WageWorks, a group that provides employer benefits.

Top 5 Medical Stocks To Watch For 2018: Royal Gold Inc.(RGLD)

Advisors’ Opinion:

  • [By Scott Levine]

    Climbing nearly 6% through January, the price of gold outpaced the meager gain — approximately 1% — of the S&P 500. Unsurprisingly, many of the market’s largest gold stocks enjoyed double-digit gains, including AngloGold Ashanti (NYSE:AU), Barrick Gold (NYSE:ABX), IAMGOLD (NYSE:IAG), and Royal Gold (NASDAQ:RGLD).

  • [By Alex McGuire]

    This list ranks gold dividend stocks in the mining sector by dividend yield. And it also includes one of our top gold stock recommendations of 2017…

    Gold Dividend Stock Share Price Year-to-Date Performance Dividend Yield (as of June 30)
    DRDGOLD Ltd. (NYSE ADR: DRD) $3.19 -39.7% 10.24%
    Sibanye Gold Ltd. (NYSE ADR: SBGL) $4.70 -33.4% 5.98%
    Harmony Gold Mining Co. (NYSE ADR: HMY) $1.62 -26.7% 4.56%
    Gold Fields Limited (NYSE ADR: GFI) $3.41 +13.3% 2.73%
    Randgold Resources Ltd. (Nasdaq ADR: GOLD) $87.68 +14.9% 1.89%
    Franco Nevada Corp. (NYSE: FNV) $72.39 +21.1% 1.27%
    Royal Gold Inc. (Nasdaq: RGLD) $76.85 +21.3% 1.25%
    Eldorado Gold Corp. (NYSE: EGO) $2.58 -19.9% 1.16%
    Barrick Gold Corp. (NYSE: ABX) $15.90 -0.5% 0.75%
    Goldcorp Inc. (NYSE: GG) $13.02 -4.4% 0.62%

    Six of the 10 gold stocks listed above have posted negative returns so far in 2017. The main reason behind their losses has to do with gold price volatility.

Top 5 Medical Stocks To Watch For 2018: Dover Corporation(DOV)

Advisors’ Opinion:

  • [By Jon C. Ogg]

    Dover Corp. (NYSE: DOV) was at $75.19 at the end of 2016 and the firm has a $85.00 price objective. This is 13% in implied upside for Dover, before considering its 2.3% dividend yield.

Top 5 Medical Stocks To Watch For 2018: Taylor & Martin Group Inc (TMG)

Advisors’ Opinion:

  • [By Laurie Kulikowski]

    We rate THERMO FISHER SCIENTIFIC INC as a Buy with a ratings score of A+. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company’s strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, reasonable valuation levels, good cash flow from operations and growth in earnings per share. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. 

  • [By Jim Cramer]

    Net operating cash flow has increased to $743.90 million or 10.04% when compared to the same quarter last year. In addition, THERMO FISHER SCIENTIFIC INC has also modestly surpassed the industry average cash flow growth rate of 0.44%.

     

  • [By Jim Cramer]

    THERMO FISHER SCIENTIFIC INC’s earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, THERMO FISHER SCIENTIFIC INC increased its bottom line by earning $4.70 versus $3.49 in the prior year. This year, the market expects an improvement in earnings ($7.39 versus $4.70).

     

Top 5 Medical Stocks To Watch For 2018: LG Display Co., Ltd.(LPL)

Advisors’ Opinion:

  • [By Peter Graham]

    A long term performance chart shows shares of Corning Incorporated in a steady uptrend since we recommended the stock while Universal Display Corporation (NASDAQ: OLED) has taken off even higher and LG Display Co Ltd (NYSE: LPL) and AU Optronics Corp (NYSE: AUO) have given a similar performance:

  • [By Anders Bylund, Chuck Saletta, and Brian Feroldi]

    According to comments by Universal Display CEO Steve Abramson, Samsung (NASDAQOTH:SSNLF) is pouring $9 billion into building OLED production facilities this year. LG Display (NYSE:LPL) expects more than half of its 2020 revenues to come from OLED panels. The OLED TV market is expected to grow sixfold in the next four years, and the lighting panel market is only just getting started.

Top 5 Medical Stocks To Watch For 2018: Honeywell International Inc.(HON)

Advisors’ Opinion:

  • [By Ben Levisohn]

    The exuberance seen in some stocks is of concern. Caterpillar (CAT) recently warned that earnings expectations are too high. When the stock stopped trading we expected a decline of 3 to 5%, yet the stock actually opened higher. This has probably happened in the past but we cannot readily recall a stock reacting positively to its own downgrade. Honeywell International (HON) also suggested investor expectations are excessive, but again – with little apparent damage to its price.

  • [By WWW.THESTREET.COM]

    Who are the likely candidates for the next round of upgrades? Cramer said he’s betting that 3M (MMM) will be in the mix, along with Walmart (WMT) and especially Home Depot (HD) , which should have a strong spring planting season with good comparisons to last year. Investors might also see upgrades on Honeywell (HON) and Nike (NKE) , Cramer suggested.

  • [By Mitchell Clark]

     Honeywell International Inc. (NYSE:HON) is its own diversified powerhouse in aerospace. This particular industry is doing far better than the general economy.

    Honeywell’s recent quarterly results were very good. The company backed its 2016 sales and earnings outlook, which really pleased the market.

    This stock is not overpriced and prospects for rising dividend payments going forward remain excellent.

  • [By Ben Levisohn]

    Honeywell International (HON) is doing what its bigger industrial competitor General Electric (GE) can’t–beating earnings forecasts and seeing its shares gains.

    Getty Images

    Honeywell reported a profit of $1.66 a share, beating estimates for $1.62 a share, on sales of $9.49 billion, beating forecasts for $9.33 billion. Honeywell also lifted the bottom end of its full-year guidance range to $6.90, from $6.85.

    Vertical Research Partners’ Robert Stallard digs into Honeywell’s guidance:

    Honeywell continues to expect that the aftermarket in air transport (supported by 4-5% flight hour growth) will grow faster than at BGA (with declining flight hours in BGA expected). For bizjet, Honeywell reiterated that it isnt anticipating an OE recovery until the 2018/19 timeframe. It expects Q2 Aerospace sales to be flat to down 2% on the similar trends of air transport aftermarket growth being offset by ongoing softness in BGA and Space, and noted that Q2 should be the last quarter of OE incentive headwinds (H2 moving to a ~$70m tailwind versus a ~$25m headwind in H1).

    Shares of Honeywell have gained 2.6% to $126.96 at 2:54 p.m. today, while General Electric has fallen 1.9% to $29.70 after reporting earnings. The Industrial Select Sector SPDR ETF (XLI) has advanced 0.2% to $65.48.

  • [By Laurie Kulikowski]

    HON is our top pick and a core EE/MI holding. While fundamentals are not best-in-class, we see HON as the best Energy play within the group with overall profit growth continuing to stand out next year, driven by high business quality and ongoing execution around cost and margins. And with ’17 the "inflection" year for revenues and Elster accretion, coupled with plenty of balance sheet optionality, we believe the stock deserves to trade at a premium versus an average discount across a range of metrics, including an adjustment for pension. 

Top 10 Casino Stocks To Own Right Now

Related LVS Macau Might Finally Be Headed In The Right Direction McGregor Vs. Mayweather Superfight Could Be Huge For Las Vegas 'Safe' Consumer Cyclical Dog Retailers And Resorts Romp (Seeking Alpha)
Related MGM Macau Might Finally Be Headed In The Right Direction Cramer Advises His Viewers On Fluor, Bank of America, MGM Resorts And Jack In The Box Casino Stocks Fail To Come Up Trumps (Seeking Alpha)

Most of the time when a company sells an asset to another company, the market rewards the perceived “winner” of the deal and punishes the loser. On rare occasion, the market will see a transaction as a win-win for both parties involved.

Top 10 Casino Stocks To Own Right Now: ADA-ES Inc.(ADES)

Advisors’ Opinion:

  • [By Jim Robertson]

    Yesterday, our Under the Radar Moversnewsletter suggested small cap emissions solutions stock Advanced Emissions Solutions, Inc (NASDAQ: ADES) as a potential long/bullish trade:

Top 10 Casino Stocks To Own Right Now: Leading Brands Inc(LBIX)

Advisors’ Opinion:

  • [By Lisa Levin]

    Leading Brands, Inc (USA) (NASDAQ: LBIX) shares shot up 66 percent to $2.49 following Q1 results. Leading Brands reported Q1 earnings of $0.10 per share on revenue of $3.033 million.

  • [By Lisa Levin]

    Leading Brands, Inc (USA) (NASDAQ: LBIX) shares dropped 13 percent to $1.99 following Q2 results. Leading Brands posted Q2 EBITDAS of $0.00 per share, compared to $0.09 per share during the same period last year.

  • [By Lisa Levin]

    Leading Brands, Inc (USA) (NASDAQ: LBIX) shares were also up, gaining 145 percent to $3.31 on no formal news from company. The stock rallied 215 percent over Tuesday and Wednesday of this week amid trader speculation stock could be sympathy play on move higher in Helios & Matheson. However, Leading Brands shares sold off 27 percent on Thursday.

Top 10 Casino Stocks To Own Right Now: Infinera Corporation(INFN)

Advisors’ Opinion:

  • [By Billy Duberstein]

    What a year 2016 was for Infinera (NASDAQ:INFN) shareholders. The stock plunged over 50% last year, as its multiyear run of accelerating 20%-30% growth rates ground to a halt. The story changed from that of a high-growth technology company riding the secular trend of exploding data and bandwidth needs to one of stagnating revenues, profits turning to losses, increased competition, and end customers pausing investments in optical networks.

  • [By Brian Feroldi]

    Investing in the tech sector can be tricky. Competition tends to be fierce, which makes it difficult to stay one step ahead. Two companies that have a strong history of maintaining their edge are Skyworks Solutions(NASDAQ:SWKS)and Infinera(NASDAQ:INFN). Both of these businesses have been taking market share in their industries for years, which is impressive. But which of these two tech companies is the better investment today? Let’s review the bull thesis for each company so we can make an informed decision.

  • [By Lisa Levin]

    Infinera Corp. (NASDAQ: INFN) shares were also up, gaining 27 percent to $11.92 after the company reported stronger-than-expected Q4 results.

    Equities Trading DOWN

  • [By Tracey Ryniec]

    Infinera isn’t in a glamorous part of the technology business, as it provides fiber optic connection gear, but as companies like Amazon and Facebook need and use ever more data, it’s Infinera which paves the way. Earnings are expected to grow 31% in 2016. 

Top 10 Casino Stocks To Own Right Now: Werner Enterprises, Inc.(WERN)

Advisors’ Opinion:

  • [By Jake L’Ecuyer]

    Equities Trading DOWN
    Shares of Outerwall (NASDAQ: OUTR) were down 16.03 percent to $47.00 after the company lowered its forecast for the third quarter and full year. Werner Enterprises (NASDAQ: WERN) shares tumbled 4.71 percent to $23.26 after the company issued a weak third-quarter profit forecast. Bank of America downgraded the stock from Buy to Neutral. Pandora Media (NYSE: P) down, falling 1.71 percent to $23.58 as the company announced its plans to sell 14 million shares of common stock, including 4 million shares from current stockholders.

  • [By Monica Gerson]

    Werner Enterprises (NASDAQ: WERN) issued a weak third-quarter profit forecast. Werner shares dropped 2.09% to $23.90 in the after-hours trading session.

  • [By Monica Gerson]

    Werner Enterprises (NASDAQ: WERN) shares dropped 4.83% to $23.23 in pre-market trading after the company issued a weak third-quarter profit forecast.

  • [By Michael Flannelly]

    Following Werner Enterprises, Inc.’s (WERN) third quarter earnings warning, analysts at KeyBanc downgraded the transportation and logistics company on Tuesday.

    The analysts downgraded WERN from “Buy” to “Hold.”

    KeyBanc analyst Todd Fowler said, “We downgrade WERN from Buy to HOLD following its negative 3Q pre-ann’ct, which reflected a number of company-specific issues that we expect to limit upside going forward; we would focus investors on other, stronger-performing names within the truckload space, specifically, BUY-rated Swift Transportation Company (SWFT), Marten Transport Ltd. (MRTN), and Knight Transportation Inc. (KNX).”

    Werner Enterprises shares were down $1.66, or 6.80%, during pre-market trading on Tuesday. The stock is up 12.64% year-to-date.

Top 10 Casino Stocks To Own Right Now: Daimler AG (DDAIF)

Advisors’ Opinion:

  • [By SEEKINGALPHA.COM]

    Other manufacturers are also planning to produce and sell all-electric trucks by the end of the current decade – Reuters reports that Navistar International Corp. (NYSE:NAV) and Volkswagen AG’s (OTCPK:VLKAF) Truck and Bus are working together to launch an electric medium duty truck by late 2019, while rival Daimler AG (OTCPK:DDAIF) has delivered the first of a smaller range of electric trucks to customers in New York. These are designed for shorter ranges than the Tesla semi but will likely see expanded ranges as battery technology advances.

  • [By SEEKINGALPHA.COM]

    Companies like Volvo (OTCPK:VOLVY), General Motors (NYSE:GM), Suzuki (OTCPK:SZKMF), Mercedes (OTCPK:DDAIF), and Ford (NYSE:F) are all using the small Swedish company’s tech. The most prominent use for zForce is in the dashboard infotainment center, but it’s also being used as gesture control for closing the tailgate or opening a door and even in using the steering wheel.

  • [By SEEKINGALPHA.COM]

    Last decennium, the popularity of both French Peugeot and CitroŠ»Ťn has lost traction against that of German car manufacturers. PSA experienced declining sales, while German car manufacturers Volkswagen (OTCPK:VLKAY), BMW (OTCPK:BMWYY) and Daimler (OTCPK:DDAIF) have been stacking up sales records year after year over the last 6 years.

  • [By SEEKINGALPHA.COM]

    Through an alliance and investment in Nissan in 1999 Renault currently holds 43% of Japanese car manufacturer Nissan. Since 1999 Nissan has performed well and currently Nissan is worth $43B. Nissan is attractively valued with a P/E of 6.9 a P/B of 0.92 and P/S of 0.41 and a dividend yield of 4.2%. Renault’s stake of 43% in Nissan is worth ($43*0.43=) $18.5B. This means that the other operations of Renault including its 73.3% stake in leading Russian car manufacturer AutoVaz and 1.55% stake in Daimler are valued at only $8.5B. The market value of AutoVaz is $644M which means Renaults stake is worth approximately $472M. Daimler (OTCPK:DDAIF) is worth $77.4B which leads to a value of 1.2B for the 1.55% piece owned by Renault.

Top 10 Casino Stocks To Own Right Now: Syndax Pharmaceuticals, Inc. (SNDX)

Advisors’ Opinion:

  • [By Chris Lange]

    Syndax Pharmaceuticals, Inc. (NASDAQ: SNDX) is watching its shares make a handy gain on Wednesday after the firm reported a key agreement. Essentially, the company announced that it has entered into a Cooperative Research and Development Agreement (CRADA) with the National Cancer Institute (NCI).

  • [By Lisa Levin]

    Shares of Syndax Pharmaceuticals Inc (NASDAQ: SNDX) got a boost, shooting up 32 percent to $12.40 after the company reported the advancement of ENCORE 601 in non-small cell lung cancer patients with disease progression on or after PD-1 therapies.

Top 10 Casino Stocks To Own Right Now: LG Display Co., Ltd.(LPL)

Advisors’ Opinion:

  • [By Peter Graham]

    A long term performance chart shows shares of Corning Incorporated in a steady uptrend since we recommended the stock while Universal Display Corporation (NASDAQ: OLED) has taken off even higher and LG Display Co Ltd (NYSE: LPL) and AU Optronics Corp (NYSE: AUO) have given a similar performance:

  • [By Anders Bylund, Chuck Saletta, and Brian Feroldi]

    According to comments by Universal Display CEO Steve Abramson, Samsung (NASDAQOTH:SSNLF) is pouring $9 billion into building OLED production facilities this year. LG Display (NYSE:LPL) expects more than half of its 2020 revenues to come from OLED panels. The OLED TV market is expected to grow sixfold in the next four years, and the lighting panel market is only just getting started.

Top 10 Casino Stocks To Own Right Now: INC Research Holdings, Inc.(INCR)

Advisors’ Opinion:

  • [By WWW.GURUFOCUS.COM]

    For the details of LEE THOMAS H PARTNERS LP’s stock buys and sells, go to www.gurufocus.com/StockBuy.php?GuruName=LEE+THOMAS+H+PARTNERS+LP

    These are the top 5 holdings of LEE THOMAS H PARTNERS LPINC Research Holdings Inc (INCR) – 25,174,838 shares, 38.1% of the total portfolio. New PositionParty City Holdco Inc (PRTY) – 65,157,952 shares, 25.55% of the total portfolio. West Corp (WSTC) – 18,099,239 shares, 12.29% of the total portfolio. MoneyGram International Inc (MGI) – 23,604,607 shares, 11% of the total portfolio. Fogo de Chao Inc (FOGO) – 17,053,123 shares, 6.12% of the total portfo

Top 10 Casino Stocks To Own Right Now: Costco Wholesale Corporation(COST)

Advisors’ Opinion:

  • [By Daniel B. Kline]

    Costco (NASDAQ:COST) has not raised membership fees in the United States and Canada since November 2011, and CFO RIchard Galanti hinted during its Q1 earnings call in December 2016 that an increase was coming this year.Those hints will become reality on June 1.

  • [By Teresa Rivas]

    Costco (COST) is lower after hours, following its mixed first-quarter earnings report.

    Costco said that it earned $1.24 a share, a nickel ahead of analysts expectations.

    Its revenue of $28.1 billion was slightly below the $28.3 billion analysts were expecting. However, it was above the $27.5 billion it said that it expected to earn in its Nov. 30 pre-announcement.

    Costco is down 1% to $152.36 after hours, after closing up 1.9% during regular trading. The shares are down 4.7% year to date.

  • [By Shanthi Rexaline]

    Kroger Co (NYSE: KR) and Costco Wholesale Corporation (NASDAQ: COST) are among the other retailers that significantly benefit from SNAP.

    Although estimates are not available, beverage giants such as PepsiCo, Inc. (NYSE: PEP), Dr Pepper Snapple Group Inc. (NYSE: DPS) and The Coca-Cola Co (NYSE: KO) also benefit from SNAP. When there was a move in 2011 to bring about restrictions on SNAP purchases, Pepsi reportedly spent $750,000 in the third quarter of 2011 on lobbying alone.

  • [By Demitrios Kalogeropoulos]

    As for individual stocks, Costco Wholesale(NASDAQ:COST) and Big Lots (NYSE:BIG) were some of the biggest individual movers as investors reacted to details from their latest quarterly earnings reports.

  • [By WWW.THESTREET.COM]

    Not all grocers will suffer from Amazon’s growing reach, but those who sell to high-income customers in the top 25 U.S. markets may see their business erode. Among those names include Costco (COST) , Trader Joe’s and Whole Foods (WFM) , which have the most to lose according to Barclays. On the other hand, Walmart (WMT) , Sam’s Club (owned by Walmart) and Ingle’s Markets (IMKTA)  have the least to lose.

Top 10 Casino Stocks To Own Right Now: BorgWarner Inc.(BWA)

Advisors’ Opinion:

  • [By Ben Levisohn]

    Yesterday, Morgan Stanleys Adam Jonas cut Delphi Automotive (DLPH) to Underweight from Overweight citing the threat posed by electric cars (and not just Tesla Motors (TSLA)). Today, Bairds David Leiker and team offer a fuller defense of Delphi Automotive, as well as Borg Warner (BWA) and Lear (LEA):

  • [By Ben Levisohn]

    Yesterday, I dubbed the selloff in auto stocks “car-pocalypse now,” as shares of everything car related tumbled following disappointing auto sales. Shares of General Motors (GM) and Ford Motor (F)? Check. Auto-part makers like BorgWarner (BWA)? Check. Used-car sellers like AutoNation (AN) and CarMax (KMX)? Check. Auto-part retailers like O’Reilly Automotive (ORLY) and AutoZone (AZO)? Oh yeah. So is it time to panic?

Corning: Gorilla Glass Is Great But A Small Part Of Revenue

The Discipline of Market Leaders by Michael Treacy and Fred Wiersema holds that successful companies must focus their expertise in one of three areas (1) Operational Excellence, (2) Product Leadership, or (3) Customer Intimacy. Naturally a company doesn’t forgo the other two, but the thesis is it must focus on and master one to be a successful leader. Corning’s (NYSE:GLW) focus is definitely Product Leadership. This article acknowledges its commitment to long-term innovation and will discuss shorter-term financial impacts.

Corning Gorilla Glass: One of Many Glass-Related Products

Corning, Inc.’s Gorilla Glass has been included in over 5 billion devices such as smartphones, tablets, laptops and wearables like smartwatches designed and sold by over 40 different Original Equipment Manufacturers (OEMs). These include leading brands like Samsung (OTC:SSNLF), Acer, Sharp (OTCPK:SHCAY), Sony (NYSE:SNE) and many less-known brands. Apple (NASDAQ:AAPL) is not listed on the Corning website as an OEM using Gorilla Glass and little or no public information is available about its use. However, Corning has recently received $200M from Apple’s new manufacturing investment fund.

While Gorilla Glass is a high-profile Corning product, it contributed less than 9% of total 2016 revenues of $9.390B (GAAP revenue).

Corning does business through five product segments which have different customers and different competitors (Gorilla Glass is in the Specialty Materials segment).

Source: Corning 2017 Proxy Statement

Corning, with revenue of close to $10B annually and a market cap of $28B, can be classified as a large cap company. It is 298th of 500 on the Fortune 500 list based on revenue. While it is an innovator in glass-related products, it is normally classified in the Industrial Sector and Electronics and Electrical Equipment Industry due to its diversification of glass-related products noted above.

Corning has produced world-class inventions and has a robust innovation program which will result in new products for the 21st century. A short summary of the premier innovation program is provided in a section below. The focus of this article is the short-term – the next one to two years.

Let’s start with a summary of competitors. From the 2016 Corning 10-K:

“Corning competes with many large and varied manufacturers, both domestic and foreign. Some of these competitors are larger than Corning, and some have broader product lines. Corning strives to maintain and improve its market position through technology and product innovation. For the future, Corning believes its competitive advantage lies in its commitment to research and development, its commitment to reliability of supply and product quality and technical specification of its products.”

I would classify Corning as having an R&D, innovation and product culture vs. a marketing culture (The Discipline of Market Leaders). This is all fine, but the top line in the income statement is revenue led by marketing.

With five diverse segments, the competitors range from small unique companies to large multinationals. Many of the competitors are based in Asia and are a holding of a larger parent company. A sample list of competitors follows.

Display Technologies competition includes large Asian LCD manufacturers:

Samsung Electronics/Samsung Display, Ltd. Sharp Corp. LG/LG Display, Ltd. (NYSE:LPL) Japan Display, Inc. (OTCPK:JPDYY) Nippon Electric Glass (OTC:NPPEY)

As an example, Nippon Electric Glass, known as NEG, is a $2.4B revenue company with 20% of the world’s LCD market share.

Optical Communications competitors are many and diverse. Ten cable making groups have 63% of the world market. The primary competing producers of the Optical Communications segment are CommScope (NASDAQ:COMM) and Prysmian Group (OTCPK:PRYMF), which is headquartered in Milan, Italy.

Gorilla Glass competitors include:

Asahi Glass of Japan (OTCPK:ASBRF) Schott AG of Germany Nippon Electric Glass

So what this means is that Corning has many competitors throughout the world which have an impact on the Sales, Marketing and Business Development organization structure and effectiveness. These costs are generally rolled up into the selling, general and administrative (SG&A) line in the income statement. Corning’s SG&A is 16% of revenue. SG&A normally includes sales, marketing, finance, HR, compliance, etc. The sales and marketing component is not specifically identified. SG&A/revenue varies widely depending upon the business and industry. It can range from 5% to 30%. Details of Corning’s Sales, Marketing and Business Development organization and approach are not publically available.

Business Segment Near-Term Growth Prospects

From Morningstar’s (Premium Membership Content):

“We think the company is well-positioned for growth in the optical fiber business, as carriers and data center operators seek to improve network capacity. However, heavy customer concentration along with stiff competition in the optical communications space has resulted in weaker profitability than in the display glass business. Beyond optical, we think Corning’s environmental technologies business stands to benefit from increasingly stringent emissions regulations in the U.S. and European markets, resulting in renewed demand for its filter products. Further, we are optimistic of the growth in Corning’s specialty materials segment as the company expands its leadership position in protective coverings via Gorilla Glass for smartphones and PCs while also extending its presence into adjacent markets such as wearables.”

An Argus Analyst report available to Fidelity Investments private clients notes that while Display Technologies is the largest segment, near-term growth is expected to come from Optical Communication – fiber optics and 5G utilization for smartphones and other connectivity. It also notes that Specialty Materials (Gorilla Glass) is showing signs of growth.

Recent Financials

Recent financial data has been mixed. Let’s start with the income statement and then look at the balance sheet.

Source: Argus

Overall growth rates have not been stellar and 2015 was a dip from 2014. A three-year revenue growth rate of 20% is 6-7% per year, mid-single digits – good, not great.

However, the last six quarters have resulted in the earnings beating the analyst consensus.

Source: Thomson Reuters

A one-month stock chart:

Source: Yahoo Finance

The balance sheet is generally good. Long-term debt is $4B (Sept. 30, 2016).

Cash and cash flow has been well regarded to cover dividend, dividend growth and stock buybacks (The current dividend yield is 1.9%).

Source: Jefferson Research

Corning updated its Strategic Plan (Framework) in June 2016:

“The Strategic and Capital Allocation Framework consists of two primary actions:

Return more than $12.5 billion to shareholders through share repurchases and increased dividends. As part of this plan, Corning intends to target an adjusted debt-to-EBITDA ratio of two times, and to reduce its global cash to approximately $2 billion. Invest approximately $10 billion in Corning’s focused portfolio. Over the four years, Corning will concentrate its RD&E investment, capital spending, and strategic M&A on a cohesive set of 3 core technologies, 4 manufacturing & engineering platforms, and 5 market-access platforms. Corning, already a leader in these areas, believes its focused-portfolio approach will allow it to generate substantial growth and returns for investors.”

80% of its focus is on the three core technologies, four manufacturing & engineering platforms, and five market-access platforms. This will have a positive impact on sales focus and cost effectiveness.

Weeks also stated that the company expects to increase dividends by 10%/year in 2018 and 2019.

Other financial data of note:

Stock buybacks have decreased outstanding shares by 29%. Dividend coverage of 3.8. Free cash flow of $980M is near the top of its industry. Gross margin (TTM) is at the 80% projectile of its industry – very good. Long-term debt/equity is at the 38% projectile of its industry. The revenue/employee of $235,000 is a respectable figure. Debt-to-equity ratio is 27%, indicating the debt is at an acceptable level. Interest coverage by earnings is 16x. Corning’s profitability recently improved as the current return on capital of 15.5% exceeds the 8.8% average return over the past three years (Source: EVA Dimensions).

Dividends have increased during the past six years.

So all in all 2016 resulted in a very good financial state.

But an unknown and worrisome activity is that in the last 90 days, insiders and officers have sold shares.

Source: Thomson Reuters

So why did they sell? Were they locking in profits from the stock price rise? Do they know something we don’t about future earnings? Did they use the money to buy Christmas gifts? It’s most interesting Wendell Weeks sold $7.8M worth. By the way he has serviced as the chairman, CEO and president (all three roles together) since 2007. He joined Corning in 1983.

Innovation

Corning is committed to growth through innovation and has a track record of 165 years. It typically invests more in R&D per revenue than its competitors.

Research and development costs totaled $637 million in 2016, about 7% of revenue. That’s a healthy portion. It will invest $10 billion in R&D, capital expenditure, and M&A through 2019. In addition to R&D, Corning has been in a focused acquisition mode.

The Innovation Model

There are 17 Global Labs in the US, Russia, China, India, France, Taiwan, Korea and Germany.

What it Takes for the Stock to Appreciate

Corning has little if any aftermarket service business like General Electric (NYSE:GE) which has a stream of revenue servicing jet engines after the sale. In Corning’s case, it is pretty much “one and done”.

However, Corning is fed by innovation. New products such as automotive windows and screens, architectural glass, and pharmaceutical packaging will fuel the growth. In the short term, earnings growth can be driven by a combination of the individual business segment growth (e.g. fiber optics), increase in market shares, product price appreciation and cost reduction. Demand for Gorilla Glass 5 and fiber should be a near-term benefit. Perhaps the Valor Pharmaceutical glass packaging will add revenue in the near term.

Conclusion

Corning has more upside potential than downside risk. It can be a long-term holding based upon the innovation thesis. In the short term, it can possibly obtain increased revenue. The CEO has promised dividend increases and stock buybacks. This is a buy, watch and hold story. The fourth-quarter 2017 earnings conference call and webcast is on January 30, 2018. Stay tuned.

Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in GLW over the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

About this article:ExpandAuthor payment: Seeking Alpha pays for exclusive articles. Payment calculations are based on a combination of coverage area, popularity and quality.Tagged: Investing Ideas, Long Ideas, Technology, Diversified ElectronicsWant to share your opinion on this article? Add a comment.Disagree with this article? Submit your own.To report a factual error in this article, click here

Top Medical Stocks To Invest In Right Now

Few industries have packed the potent gains that pot has shown over the past year.

The majority of pot stocks have seen double- and triple-digit increases from their early-year valuations.

The phrase marijuana millionaire is becoming more and more common as people just like you turn small stakes into fortunes.

2017 has been great for pot investors, but 2018 is only going to get better.

Growing public sentiment in favor of continued marijuana legalization, heavy investment from the financial worlds biggest names and new legislation allowing for new markets here and abroad…

It’s a perfect storm for big money in 2018.

A Quick Look Back

2017 was a banner year for the pot industry.

Nevada went fully legal, and to date 29 states now have legalized pot in some form or another.

Medical marijuana and now recreational pot have been huge drivers for this years market success.

Looking at the North American Marijuana Index year-to-date performance, pot plays are up a whopping 57.25%.

Top Medical Stocks To Invest In Right Now: LG Display Co., Ltd.(LPL)

Advisors’ Opinion:

  • [By Peter Graham]

    A long term performance chart shows shares of Corning Incorporated in a steady uptrend since we recommended the stock while Universal Display Corporation (NASDAQ: OLED) has taken off even higher and LG Display Co Ltd (NYSE: LPL) and AU Optronics Corp (NYSE: AUO) have given a similar performance:

  • [By Anders Bylund, Chuck Saletta, and Brian Feroldi]

    According to comments by Universal Display CEO Steve Abramson, Samsung (NASDAQOTH:SSNLF) is pouring $9 billion into building OLED production facilities this year. LG Display (NYSE:LPL) expects more than half of its 2020 revenues to come from OLED panels. The OLED TV market is expected to grow sixfold in the next four years, and the lighting panel market is only just getting started.

Top Medical Stocks To Invest In Right Now: Insmed, Inc.(INSM)

Advisors’ Opinion:

  • [By Lisa Levin]

    Insmed Incorporated (NASDAQ: INSM) shares shot up 113 percent to $26.15 following the announcement of positive top-line results from its Phase 3 Convert study of ALIS in adult patients with treatment-refractory nontuberculous Mycobacterial (NTM) lung disease..

Top Medical Stocks To Invest In Right Now: Smithfield Foods Inc.(SFD)

Advisors’ Opinion:

  • [By John Udovich]

    Thanksgiving is almost here but the exit of both Pilgrim’s Pride Corporation (NYSE: PPC) and Smithfield Foods (NYSE: SFD) to focus on their chicken or pork businesses (the latter was also acquired by the Chinese) leaves just two big Thanksgiving turkey stocks, Hormel Foods Corporation (NYSE: HRL) and Seaboard Corporation (NYSEAMEX: SEB), for investors to consider. According to the American Far Bureau, a 16-pound turkey will (on average) come in at a total of $22.74 this year or roughly $1.42 per pound for a decrease of 2 cents per pound or a total of 30 cents per whole turkey, compared to 2015. The price drop may be a transition back to the norm as the significant bird flu outbreak last year hurt the nations supply of both turkey and eggs.

Top Medical Stocks To Invest In Right Now: Haynes International, Inc.(HAYN)

Advisors’ Opinion:

  • [By Lisa Levin]

    In trading on Wednesday, basic materials shares fell by 1.24 percent. Meanwhile, top losers in the sector included Haynes International, Inc. (NASDAQ: HAYN), down 12 percent, and McEwen Mining Inc (NYSE: MUX), down 9 percent.

  • [By Lisa Levin]

    In trading on Tuesday, basic materials shares fell 0.44 percent. Meanwhile, top losers in the sector included Haynes International, Inc. (NASDAQ: HAYN), down 5 percent, and Gibraltar Industries Inc (NASDAQ: ROCK), down 4 percent.

  • [By Lisa Levin]

    Basic materials sector was the top gainer in the US market on Monday. Top gainers in the sector included Haynes International, Inc. (NASDAQ: HAYN), Cliffs Natural Resources Inc (NYSE: CLF), and Olympic Steel, Inc. (NASDAQ: ZEUS).

Top Medical Stocks To Invest In Right Now: Advance Auto Parts Inc(AAP)

Advisors’ Opinion:

  • [By Lee Samaha]

    The key issue to focus on is automotive group comparable sales, which can be seen in the chart below. I’ve also included the most directly applicable sales numbers for its peers,O’Reilly Automotive Inc (NASDAQ:ORLY), AutoZone, Inc (NYSE:AZO) and Advance Auto Parts, Inc. (NYSE:AAP). The disappointing sales performance of Advance Auto Parts is largely due to the effects of integrating a troublesome acquisition.

  • [By Spencer Israel]

     

    Riot Blockchain Inc (NASDAQ: RIOT) – The Jan. 2015 high of $15.72 is the only resistance it has.
    General Electric Company (NYSE: GE) -The low of the move is a double bottom at $17.46 and  $17.50. That’s support.
    Overstock.com Inc (NASDAQ: OSTK) – The February 2005 high was $58.24, which is the only relevant resistance up here. On weakness, keep an eye on the all-time closing high of $56.65 made on Monday.
    Advance Auto Parts, Inc. (NYSE: AAP) – Is trying to fill the gap from earnings between $82.82 and $94.75.
    Tesla Motors Inc (NASDAQ: TSLA) – It needs to clear Friday’s close of $315.05 and Monday’s high of $315.50 to find support.
    Urban Outfitters, Inc. (NASDAQ: URBN) – There was a double close at $27.90 from Friday and $28.27 from Monday, so that’s resistance.
    DSW Inc. (NYSE: DSW) -The premarket low was $18.40. There are also four daily lows at the $18.40 area from early November, and the low of the move is $17.89.
    Signet Jewelers Ltd. (NYSE: SIG) – the premarket low was $61.50, which was the low of the move. There’s daily lows at the $61 area from mid-August, and another pair of lows at $60. Below that, there’s a gap area down to $52.95.
    Lowe’s Companies, Inc. (NYSE: LOW)- The Friday low was $79.17, and a pair of lows from Wednesday and Thursday at $78.27 and $78.23.
    Campbell Soup Company (NYSE: CPB) – The buy zone is between $45-$46. The low of the move was $44.99, flanked by the $45.14 low the following day.
    Dollar Tree, Inc. (NASDAQ: DLTR) – $99.93 and a big psychological number at $100.
    Burlington Stores Inc (NYSE: BURL) – The Monday low was $104.55. The all-time high and all-time closing high are $106.55 and $106.89, respectively. 
    Exxon Mobil Corporation (NYSE: XOM) – Big triple bottom at $80.

    Watch the full show below!

  • [By WWW.THESTREET.COM]

    So here’s a disruptive move. Consider buying auto parts retailer Advance Auto Parts (AAP) , the weakest of the big three in the sector, which has 5,000-plus locations in the U.S. The other two players are O’Reilly Automotive, Inc. (ORLY) , the fastest-growing of the three, and AutoZone, Inc. (AZO) .

  • [By ]

    3. Advance Auto Parts (NYSE: AAP)
    A leader in the consumer auto parts space, Advance boasts over 5,200 stores, 100 Worldpac branches, and serves more than 1,300 independently owned CARQUEST branded shops.

  • [By Ben Levisohn]

    Advance Auto Parts (AAP) surged to the top of the S&P 500 today after releasing better-than-expected third-quarter earnings.

    Getty Images

    Shares of Advance Auto Parts gained 15% to $164.33, while the S&P 500 rose 0.8% to 2,180.39.

    Credit Suisse analyst Seth Sigman and team explain why shares of Advance Auto Parts are soaring:

    Advance Auto Parts’ Q3 and strategic update was one of the better scenarios for this stock with better than expected comps, positive commentary on Q4, a roughly in line 2017 outlook, and a new sense of direction on how this new management team will narrow the margin gap with peers. Management guided to a 500 bps long-term margin improvement, which wasnt a surprise to investors, and other specifics were still limited. However, timed with Q3/4′s improvement, this should help instill some early confidence in this team. We are adjusting our 2016 and 2017 EPS modestly, to $7.30 (from $7.23) and to $7.65 (from $7.60) respectively.

    Advance Auto Parts market capitalization rose to $12.1 billion today from $10.7 billion yesterday.

Top Medical Stocks To Buy For 2018

Few industries have packed the potent gains that pot has shown over the past year.

The majority of pot stocks have seen double- and triple-digit increases from their early-year valuations.

The phrase marijuana millionaire is becoming more and more common as people just like you turn small stakes into fortunes.

2017 has been great for pot investors, but 2018 is only going to get better.

Growing public sentiment in favor of continued marijuana legalization, heavy investment from the financial worlds biggest names and new legislation allowing for new markets here and abroad…

It’s a perfect storm for big money in 2018.

A Quick Look Back

2017 was a banner year for the pot industry.

Nevada went fully legal, and to date 29 states now have legalized pot in some form or another.

Medical marijuana and now recreational pot have been huge drivers for this years market success.

Looking at the North American Marijuana Index year-to-date performance, pot plays are up a whopping 57.25%.

Top Medical Stocks To Buy For 2018: Intuitive Surgical Inc.(ISRG)

Advisors’ Opinion:

  • [By Benzinga News Desk]

    Microsoft (NASDAQ: MSFT) Reports Q4 EPS $0.69 vs. Est. $0.58, Rev. $22.64B vs. Est. $22.14B
    Intuitive Surgical (NASDAQ: ISRG) Reports Q2 GAAP EPS $4.71, Adj. EPS $5.62 vs $4.97 Est., Sales $670.1M vs $540.7M Est.
    Halliburton (NYSE: HAL) Q2 EPS ($0.14) vs ($0.19) est, Revenue $3.84B vs $3.75B est
    Morgan Stanley (NYSE: MS) Q2 EPS $0.75 vs $0.59 est, Revenue $8.9B vs $8.3B est

  • [By Joseph Hogue]

    Enter Intuitive Surgical (Nasdaq: ISRG) and Da Vinci, a robotic arm that allows surgeons to operate with just a single incision less than an inch in size.

  • [By George Budwell, Keith Speights, and Cory Renauer]

    So, to help investors separate the wheat from the chaff, we asked our Foolish contributors which stocks they thought are worth owning until at least 2030. These three healthcare specialists recommended Medtronic (NYSE:MDT), Johnson & Johnson (NYSE:JNJ), andIntuitive Surgical (NASDAQ:ISRG). Read on to find out why.

  • [By Ashley Moore]

    Here is a table of the 10 most expensive stocks trading on U.S. markets today:

    Company (Ticker)Price per ShareMarket CapBerkshire Hathaway Inc. (NYSE: BRK-A)$ 257,227.52$ 419.50 billionSeaboard Corp. (NYSEMKT: SEB)$ 3,760.00$ 4.48 billionNVR Inc. (NYSE: NVR)$ 1,944.23$ 7.19 billionThe Priceline Group Inc. (Nasdaq: PCLN)$ 1,727.94$ 80.82 billionMarkel Corp. (NYSE: MKL)$ 978.51$ 13.78 billionWhite Mountains Insurance Group Ltd. (NYSE: WTM)$ 935.01$ 4.25 billionAmazon.com Inc. (Nasdaq: AMZN)$ 846.08$ 408.27 billionAlphabet Inc. (Nasdaq: GOOGL)$ 844.06$ 582.85 billionAutoZone Inc. (NYSE: AZO)$ 744.26$ 21.04 billionIntuitive Surgical Inc. (Nasdaq: ISRG)$ 735.63$ 28.41 billion

  • [By Demitrios Kalogeropoulos]

    As for individual stocks, IBM (NYSE:IBM) and Intuitive Surgical (NASDAQ:ISRG) attracted heavy investor interest following their quarterly earnings releases.

Top Medical Stocks To Buy For 2018: OneBeacon Insurance Group, Ltd.(OB)

Advisors’ Opinion:

  • [By Monica Gerson]

    The list of below stocks is notable as the shares have traded on sequentially increasing volume spanning the trading days from September 16 to September 20:

Top Medical Stocks To Buy For 2018: LG Display Co., Ltd.(LPL)

Advisors’ Opinion:

  • [By Peter Graham]

    A long term performance chart shows shares of Corning Incorporated in a steady uptrend since we recommended the stock while Universal Display Corporation (NASDAQ: OLED) has taken off even higher and LG Display Co Ltd (NYSE: LPL) and AU Optronics Corp (NYSE: AUO) have given a similar performance:

  • [By Anders Bylund, Chuck Saletta, and Brian Feroldi]

    According to comments by Universal Display CEO Steve Abramson, Samsung (NASDAQOTH:SSNLF) is pouring $9 billion into building OLED production facilities this year. LG Display (NYSE:LPL) expects more than half of its 2020 revenues to come from OLED panels. The OLED TV market is expected to grow sixfold in the next four years, and the lighting panel market is only just getting started.

Top Medical Stocks To Buy For 2018: Medical Marijuana, Inc. (MJNA)

Advisors’ Opinion:

  • [By Matthew Briar]

    Look out Cannabis Science Inc (OTCMKTS:CBIS), and step aside Medical Marijuana Inc (OTCMKTS:MJNA). There’s a new cannabis name on the scene…. Algae Dynamics Corp. (OTCMKTS:ADYNF). It may not be known (or named) like its marijuana peers, but give it time. This small cap company has a very big idea, and it’s going to sprout soon.

    Yes, Algae Dynamics is an algae company. It’s not just an algae company though.

    Algae Dynamics is the owner of the proprietary BioSilo ™ process. BioSilo is a way of growing algae quickly and effectively…. a mix of an open-pond system and a photobioreactor, which is a light-driven approach to growing algae. It can be viewed as a “best of both worlds” approach, lowering the typical cost of algae farming, while the modular design makes it easy to maintain.

    The company could go a lot of directions with the technology, Most of the tens of thousands of species of algae are rather flexible in how they can be purposed, and what they can become. Algae Dynamics is first focused on the development of two kinds of products though…. Chlorella, and Omega-3.

    Chlorella is a type of microalgae that can be processed into a consumable powder by drying it until it takes a powder form, similar to coffee. Chlorella is rich in minerals, prebiotics, vitamins, and other nutritional substances. It can be added to a baked goods and a number of other products, or taken as a supplement on its own. Chlorella is used in over 1,000 products in the food and beverage markets. Algae Dynamics estimates the global Chlorella market was $210.3 million in 2014 and is expected to reach $265.5 million in 2018.

    Despite a market for Chlorella in North America, there are no commercial North American producers of it.

    Due to its health benefits, Omega-3 oil can be added to a very wide range of products. Consumers are increasingly aware of these benefits too, leading to substantial growth in the industry; health supplements compr

  • [By Jim Robertson]

    When investors think of cannabinoid or marijuana stocks, they either think of better known stocks likeGW Pharmaceuticals PLC (NASDAQ: GWPH)and Zynerba Pharmaceuticals Inc (NASDAQ: ZYNE) that trade on bigger exchanges orCannabis Science Inc (OTCMKTS: CBIS) and Medical Marijuana Inc (OTCMKTS: MJNA) that are stilllisted on the OTC. However, there are other more indirect ways to invest in growing cannabinoid or marijuana acceptance.

  • [By Peter Graham]

    A long term performance chart shows GW Pharmaceuticals PLC outperforming other small cap marijuana stocks like Zynerba Pharmaceuticals Inc (NASDAQ: ZYNE), Cannabis Science Inc (OTCMKTS: CBIS) and Medical Marijuana Inc (OTCMKTS: MJNA), but that outperformance has come withconsiderable volatility:

  • [By Peter Graham]

    A long term performance chart shows GW Pharmaceuticals PLC outperforming other marijuana stocks like Zynerba Pharmaceuticals Inc (NASDAQ: ZYNE), Cannabis Science Inc (OTCMKTS: CBIS) and Medical Marijuana Inc (OTCMKTS: MJNA), but shares are also once again falling off from all-time highs:

Universal Display Keeps On Rising

At certain intervals, people writing about investing should look back and take stock of what they have written, as a form of error correction. For instance, we have missed numerous rallies, dismissing certain stocks at the time as fully valued already, or too expensive.

It is worthwhile to look back at a few of these and seeing whether there are any lessons to be drawn from these articles.

Consider for instance what we wrote about Universal Display (OLED), just three months ago. Here is part of the conclusion:

We would hold off buying Universal Display shares for the moment. While the financial condition of the company is very sound and their growth perspective is even better, this is already reflected in the valuation of the stock and technically we will have to see how it develops first.

The share price at that time was roughly $117. It’s not $117 anymore. What did we miss? Well, quite a bit:

Source: FinViz

Basically, the company is powered by multiple strong tailwinds:

OLED is already conquering smartphones. OLED TVs are getting cheaper fast and they look set to become an important part of the market. OLED could address an even bigger market, that of lightening. Monitors

We are even forgetting there are markets in the middle, such as tablets, laptop screens, and computer monitors. OLED screens are already used in various tablets, most notably those of Samsung (OTC:SSNLF), but they have yet to catch on in laptops and monitors.

At first sight, this seems odd as OLED has the same advantages as in other display markets:

OLED provides a better image quality with a much higher contrast (true blacks), a wide color gamut, better viewing angles and a much faster refresh rate. OLED panels are much thinner and lighter as compared with LCD panels. An OLED monitor would consume less power – as only lit pixels draw energy on OLED displays. An almost black screen will require very little power. An OLED monitor can be flexible or even transparent.

The reason OLED monitors or laptop screens haven’t yet caught on despite these advantages is the burn-in problem: static images can degrade certain pixels on the screen and OLED is sensitive to this problem. Dell’s 4K OLED monitor had developed a solution for this though:

Dell said that it developed special technologies to compensate for image-burn in (using pixel-shifting) and the relatively short OLED lifetime (using a presence detector that switches off the display when no one is in front of the monitor).

That monitor was delayed because of another teething problem (color shift when moving sideways from the monitor), but it is now on the market.

OLED monitors are a small trickle now, but this stream might get more current when the price differential has sufficiently narrowed (that Dell monitor sells for $3499 – it isn’t cheap). But don’t get your hopes up too high. We’ve been here before:

According to ETNews, LG display aims to start producing OLED panels for computer monitors and laptops. LG wants to diversify their OLED product lineup, and this seems like a logical next step. ETNws estimates that the first monitors will be released in 2016 or 2017.

Well, it’s now almost 2018 and little progress has been made. Another interesting development is this:

JOLED announced that it started to sample 21.6″ 4K OLED monitors. These monitors, demonstrated in March 2017, feature a 3840×2160 resolution (204 PPI), a brightness of 350 cd/m2 and a contrast ratio of 1,000,000: 1. The panel thickness is 1.3 mm and the weigh is 500 grams. JOLED aims to start mass producing these panels in 2019, but will also attempt to sell these to the medical market even in low-volume production out of its current 4.5-Gen pilot production line.

The reason it’s interesting is that this company uses a different production method:

JOLED Is using an ink-jet printing process, which (according to the company) may enable it to produce at a lower cost – around 30-50% cheaper compared to evaporation. JOLED is using Sumitomo’s P-OLED materials.

JOLED is a company that was established in 2014 by by Japan Display, Sony (NYSE:SNE) and Panasonic (OTCPK:PCRFY). And they are not the only ones:

During an OLED display Seminar in Korea, UniJet’s CEO Kim Seok-Soon said that new advances in Ink-Jet printing technologies could enable displays that are over 500 PPI – and so make printing a viable technology to produce small and medium-sized OLED panels.

And JOLED isn’t the only company to embark on this cheaper printing technology. So is Kateeva. So this market could yet take off. But there is another market that is also in the first innings.

Lightening market

This offers another potential quantum leap in OLED use, because using OLED panels as a source of lightening has several advantages:

It’s energy efficient. It produces a diffuse light source, rather than a single point or line. They can be made in any shape, which allows them to be put closer to where they are needed. Many argue that the light is also softer, more diffuse, and less harsh and unforgiving. These panels are color tunable.

Source: IDTechEx OLED lighting forecasts (April 2016)

These future projections always contain a considerable degree of uncertainty, of course. But at least one company is taking this very seriously:

LG Display announced that it has started mass production at its new 5-Gen OLED lighting fab in Gumi, Korea. The 5-Gen line (1100×1250 mm substrates) has an initial capacity of 15,000 substrates per month – about 30 times the capacity of LG’s previous 2-Gen line that had a monthly capacity of 4,000 substrates. LG hopes that the new line will enable it to produces OLED lighting panels at a much lower cost (initial estimates suggested a 95% cost reduction!) which it hopes will trigger the widespread adoption of OLED lighting globally.

So this is another enormous opportunity that looks set to take off, even if its exact trajectory is yet unknown.

Clouds on the horizon

Our own hesitation to advise to buy the stock in the past was based on its very lofty valuation and the emergence of the QDOT technology from Samsung. However, as the aptly named SA contributor Lucid Capital states, there are even bigger threats:

TADF (thermally activated delayed fluorescence) is a rare-earth free OLED emitter that reaches 100% internal quantum efficiency (IQE), hence providing better cost and energy efficiency. Given TADF’s superior performance, 30%-40% of the profit UDC is making out of selling its “standard” OLEDs is under threat. Recent breakthroughs made by several TADF vendors underlie the common belief among OLED experts that, in the coming 12 months, we will see TADF OLED emitters competing head to head with UDC’s emitters.

These TADF materials haven’t arrived completely though (from Nature):

As a result, TADF emitters have received considerable attention, and many efficient TADF molecules have been developed 4,5,6,7,8,9,10. However, TADF technology still has some outstanding issues, such as the unsatisfactory stability of devices containing TADF emitters.

The author describes a series of companies, invariably funded by either Samsung or LG (NYSE:LPL) (or both) that are doing research in this field, with various degrees of success. There is also Merck (MRK) with a growing OLED materials business and expiring Universal Display patents, which are further threats mentioned by Lucid Capital.

For any non-insider the real magnitude of these threats is really very hard to assess as the observing outsider has only scientific papers and company promises to go by.

However, we are not immediately alarmed, and we don’t think investors should be. New technologies often look very promising in the lab, but tend to suffer from assorted teething problems when they are moved to mass production.

OLED screens themselves are a good example of this, as these were destined to replace LCDs for at least a decade, and only now are they starting to create serious inroads into various markets, but not even in all segments. And they are still quite a bit more expensive.

What you also often see is the established technology often manages to squeeze out further improvements when under threat of an emerging one. This happened with LCDs under threat of OLEDs, for instance.

We might also point out the following:

Universal Display was recently awarded a new patent (USPTO #20170186976) that describes high electroluminescent efficiency TADF OLED emitter and host materials based on benzotriazoles.

We can’t even exclude the possibility that TADF could in fact be beneficial to Universal Display, for instance in enabling it for a viable way towards a more efficient blue emitter. This has been a missing link in its armor, but Goldman Sachs at least is optimistic:

Goldman Sachs’s Brian Lee today reiterates a Buy rating on shares of organic light-emitting diode technology maker Universal Display (OLED), and raises his price target to $161 from $150, writing that the company’s ability to make available “blue” materials for OLED screens on phones can be a “game changer” for the company and double its revenue per phone.

The company has already sold samples (it’s unclear whether these are based on TADF technology though), and if they pull this off it could significantly add to their revenues per device.

Valuation

While we’re not yet terribly concerned about the TADFs and the Mercks of this world, we are quite worried about this:

These valuation metrics are in nosebleed territory. Universal Display has always been an expensive stock:

But 27 times sales simply seems excessive to us.

Conclusion

OLED has arrived, and this tide has swept the stock price of Universal Display to unprecedented highs. What’s more, the OLED tide seems only in the first innings, as it will make further significant inroads in the smartphone and TV market, and has yet to establish a meaningful position in laptops and computer monitors.

Then there is OLED lightening, the next mega market to come which could very well dwarf the existing markets, given sufficient time.

Faced with exploding market opportunities, it’s only logical that a wide variety of companies are trying to innovate their way into some of this bonanza.

If the shares of Universal Display weren’t so astronomically priced, we would not be all that worried. After all, the market for OLED materials will grow fast for the foreseeable future and could accommodate more players.

Only if the competition really succeeded in jumping over Universal Display in terms of the price/performance metrics of its materials and ironing out all kinds of mass production teething problems would we really be worried.

We can’t exclude that happening, but it seems a little early for firm conclusions with respect to these threats.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

About this article:ExpandAuthor payment: $35 + $0.01/page view. Authors of PRO articles receive a minimum guaranteed payment of $150-500.Tagged: Investing Ideas, Long Ideas, Technology, Computer PeripheralsWant to share your opinion on this article? Add a comment.Disagree with this article? Submit your own.To report a factual error in this article, click here

stock market update today

Bloomberg Bill Gross thinks the market is in as bad shape as it was in 2008.

This article was originally published on June 7

stock market update today: Liberty Global plc(LBTYA)

Advisors’ Opinion:

  • [By Alex Webb]

    Kabel Deutschland is a key part of Vodafones expansion strategy as the carrier looks for ways to boost revenue and lock in customers with Internet and television offers in addition to wireless service. Kabel Deutschland is the biggest cable company in Germany, Vodafones largest market, and had drawn a rival bid from John Malones Liberty Global Plc. (LBTYA)

stock market update today: Graham Corporation(GHM)

Advisors’ Opinion:

  • [By Monica Gerson]

    Graham Corporation (NYSE: GHM) is expected to report its quarterly earnings at $0.12 per share on revenue of $23.54 million.

    Heico Corp (NYSE: HEI) is estimated to post its quarterly earnings at $0.54 per share.

stock market update today: LG Display Co., Ltd.(LPL)

Advisors’ Opinion:

  • [By Anders Bylund, Chuck Saletta, and Brian Feroldi]

    According to comments by Universal Display CEO Steve Abramson, Samsung (NASDAQOTH:SSNLF) is pouring $9 billion into building OLED production facilities this year. LG Display (NYSE:LPL) expects more than half of its 2020 revenues to come from OLED panels. The OLED TV market is expected to grow sixfold in the next four years, and the lighting panel market is only just getting started.

  • [By Peter Graham]

    A long term performance chart shows shares of Corning Incorporated in a steady uptrend since we recommended the stock while Universal Display Corporation (NASDAQ: OLED) has taken off even higher and LG Display Co Ltd (NYSE: LPL) and AU Optronics Corp (NYSE: AUO) have given a similar performance:

stock market update today: Gener8 Maritime, Inc.(GNRT)

Advisors’ Opinion:

  • [By Shanthi Rexaline]

    Frontline might be evaluating a new tanker company target such as Gener8 Maritime Inc (NYSE: GNRT), away from DHT Holdings Inc (NYSE: DHT), Lewis said. This was substantiated by the fact that Frontline sold 1.7 million shares of DHT in March, followed by 2.4 million shares in April and May. Though Frontline holds about 6.8 million shares of DHT, the Credit Suisse analyst said a deal is unlikely.

stock market update today: American Woodmark Corporation(AMWD)

Advisors’ Opinion:

  • [By Lisa Levin]

    American Woodmark Corporation (NASDAQ: AMWD) was down, falling around 17 percent to $66.88 as the company reported weaker-than-expected quarterly earnings.

  • [By Lisa Levin]

    American Woodmark Corporation (NASDAQ: AMWD) was down, falling around 13 percent to $70.39 as the company reported weaker-than-expected quarterly earnings.

stock market update today: Annaly Capital Management Inc(NLY)

Advisors’ Opinion:

  • [By Ben Levisohn]

    Hatteras Financial (HTS) has jumped 9.4% to $15.60 after agreeing to be purchased byAnnaly Capital Management (NLY) for $1.5 billion.Annaly Capital Management has dropped 1.1% to $$10.30.

  • [By Boniface Murigu]

    It’s no secret that mREITs such as American Capital Agency (NASDAQ: AGNC  ) (NASDAQ: AGNC  ) (NASDAQ: AGNC  ) , Annaly Capital Management (NYSE: NLY  ) (NYSE: NLY  ) (NYSE: NLY  ) ,and CYS Investmentshave gone through a very turbulent trading period, with all major players losing a sizable share of market value.

  • [By Dan Caplinger]

    Another tax-law provision gives favorable tax status to real-estate investment trusts. REITs make investments in real estate-related assets, and they’re required to pay out almost all their income to their shareholders annually.
    Simon Property Group (SPG) is one of the biggest REITs, focusing on shopping malls and paying a 3 percent yield. But other specialty areas of the REIT universe pay much higher dividends, with REITs like Annaly Capital (NLY) that invest in mortgage-backed securities topping the list with double-digit percentage yields.

stock market ticker

Water and waste-water service provider American Water Works Company Inc (NYSE:AWK) announced that its board of directors has approved an increase in the quarterly dividend rate by 10.7%. The revised quarterly dividend will be 41.5 cents, payable on Jun 1, 2017, to shareholders of record at the close of business on May 5, 2017.

The annualized dividend rate of the company comes to $1.66 while the current dividend yield is 2.06%, better than the S&P 500 yield of 1.83%. The hike in dividend is consistent with the company’s payout target ratio of 50–60% of net income.

stock market ticker: Neometals Ltd (RRSSF)

Advisors’ Opinion:

  • [By SEEKINGALPHA.COM]

    The other producing lithium miners, and soon to be producers. I have discussed these previously in detail here, here and here. Needless to say, the top 3 producers are non-pure plays (SQM (NYSE:SQM), Albemarle (NYSE:ALB), and FMC Corp. (NYSE:FMC)). The top pure play currently producing miners are Orocobre (ASX:ORE) (OTCPK:OROCF), Tianqi Lithium (SHE:002466), Jiangxi Ganfeng Lithium, Galaxy Resources, Mineral Resources [ASX:MIN] (OTC:MALRF), and Neometals [ASX:NMT] (OTC:RRSSF). The near-term producers include Altura Mining [ASX:AJM] (OTCPK:ALTAF), Pilbara Minerals (ASX:PLS) (OTC:PILBF), Kidman Resources (ASX:KDR), Critical Elements, Nemaska Lithium (OTCQX:NMKEF) [TSX:NMX], Lithium Americas (OTCQX:LACDF) [TSX:LAC], Lithium X (OTCQX:LIXXF) (TSXV:LIX), Neo Lithium, and Bacanora Minerals (OTC:BCRMF) [TSXV:BCN], Advantage Lithium (OTCQB:AVLIF) [AAL], European Metals (OTCPK:MNTCF, ASX:EMH, AIM:EMH) and Pure Energy (OTCQB:PEMIF) [PE].

stock market ticker: Dean Foods Company(DF)

Advisors’ Opinion:

  • [By Lisa Levin]

    Dean Foods Co (NYSE: DF) posted weaker-than-expected earnings for its first quarter on Tuesday.

    Dean Foods said it earned $0.13 per share in the first quarter on revenue of $2.00 billion; Analysts were expecting the company to earn $0.18 per share on revenue of $1.097 billion.

  • [By Peter Graham]

    Small cap dairy stock Dean Foods Co (NYSE: DF) reported Q1 earnings before the market opened this morning with results missing expectations. Net sales were $1.996 billionversus $1.879 billion as total volume across all products were 633 million gallons for the first quarter of 2017, a 1.3% decline compared to total volume of 641 million gallons in the first quarter of 2016. Based on fluid milk sales data published by the USDA through February, fluid milk volume decreased 3.4% year-over-year quarter to date in the first quarter of 2017 on an unadjusted basis. However, when adjusting for the extra selling day in 2016 due to Leap Year, the category decline was 1.8%. On this same basis, Dean Foods Co’s share of U.S. fluid milk volumes increased by 10 basis points year-over-year. Raw milk costs in the first quarter of 2017 of $17.03 per hundred weight increased roughly 6% from the fourth quarter of 2016 and increased 18% from the first quarter of 2016.

  • [By Peter Graham]

    A long term performance chart shows shares of WhiteWave Foods peakingtwo summers in a rowwhile mid capThe Hain Celestial Group, Inc (NASDAQ: HAIN) also peaked two summers in a rowandsmall cap Dean Foods Co (NYSE: DF) has been moving a bit higher for the past couple of years:

stock market ticker: Foot Locker, Inc.(FL)

Advisors’ Opinion:

  • [By JACK HOUGH]

    Barron’s has recommended Foot Locker (FL) shares several times in recent years, going back to 2009, when the shares traded for about $10. They recently fetched $64, up 12% since our most recent story (“Foot Locker: Still Running Fast,” March 9). They hit $75 in September, and could regain lost ground and then some over the next year.

    Foot Locker is benefitting from a long shift toward casual and athletic fashion. It also has a close relationship with Nike (NKE) and secures plenty of exclusive shoes, which helps protect the business from being undercut by Amazon. Nike shares have jumped 26% over the past six months on stellar earnings reports. That stock goes for over 30 times earnings, reflecting investor expectations of rapid growth for years to come. Foot Locker shares, at less than 16 times earnings, offer inexpensive exposure to Nike’s success. The retailer is also helping itself with store remodelings and a turnaround of its Lady Foot Locker chain. It has invested in recent years in Europe, where footwear sales are highly fragmented. That could pay off when Europe’s economy rebounds. For now, Wall Street predicts low-double-digit earnings growth over the next two years, and Foot Locker has made a habit of hurdling estimates. 

  • [By Chris Lange]

    The stock posting the largest daily percentage gain in the S&P 500 ahead of the close Friday was Foot Locker, Inc. (NYSE: FL) which rose about 28% to $40.89. The stocks 52-week range is $28.42 to $79.43. Volume was roughly 30 million compared to its average volume of 4.8 million.

  • [By Chris Lange]

    The S&P 500 stock posting the largest daily percentage loss ahead of the close Monday was Foot Locker, Inc. (NYSE: FL) which traded down 7.5% at $31.82. The stocks 52-week range is $31.72 to $79.43. Volume was about 22.7 million versus the daily average of 4.4 million shares.

stock market ticker: LG Display Co., Ltd.(LPL)

Advisors’ Opinion:

  • [By Peter Graham]

    A long term performance chart shows shares of Corning Incorporated in a steady uptrend since we recommended the stock while Universal Display Corporation (NASDAQ: OLED) has taken off even higher and LG Display Co Ltd (NYSE: LPL) and AU Optronics Corp (NYSE: AUO) have given a similar performance:

  • [By Anders Bylund, Chuck Saletta, and Brian Feroldi]

    According to comments by Universal Display CEO Steve Abramson, Samsung (NASDAQOTH:SSNLF) is pouring $9 billion into building OLED production facilities this year. LG Display (NYSE:LPL) expects more than half of its 2020 revenues to come from OLED panels. The OLED TV market is expected to grow sixfold in the next four years, and the lighting panel market is only just getting started.