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Strategies & Market Trends : LPL -- leader in World's TV Industry

LPL 4.990

-0.4%

9:30 AM EST

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To: chessboard_andy who wrote (23)	12/23/2020 2:15:54 PM
From: chessboard_andy	Read Replies (1) of 76

LCD-OLED Price Gap Narrowed. PLUS trader talk. This article touches on part of my mid-term thesis relative to LPL. At this point, LG Display gets to titrate pricing for OLED panels so that demand eats up their supply. The diversification of OEM's beyond the related party (LG Electronics) gives a much cleaner pricing picture, and it seems true that LG is able to realize pretty good pricing power to command while operating their Large Panel production lines with as much efficiency as possible. At the 55" size, the premium that OEM's pay for OLED panels vs a comparable LCD is down to ~$330. The wholesale price that OEM's can command for "Premium Televisions" vs their "Main Line" products substantially exceeds that amount, so "Premium Televisions" generate substantially more profit per unit sold for the OEM that incorporates the panels into televisions. This is fundamentally healthy and good for LG Display. Ultimately this means that there are substantial "triggers' that can be pulled to continue adding lines and increasing production of the panels while increasing overall profits at the component and OEM levels. The depreciation finances are beyond my full understanding. The larger issue for me is how this translates to 65" and 77" screens as well as the 48" screens that get produced alongside those larger panels using Multi-Model production techniques, and how does this factor into the decisions about if and when to commit to a 10.5G production line for OLEDs. CHANGING SUBJECTS to January Options: @Cooters Not trying to be nosy or stalker-ish, but I'm guessing that the trade of January $7.50 contracts was you locking in a profitable trade at that price and letting a chunk of contracts take a "free ride" up to $10. Well done. I might have taken a similar line, but I was busy this morning at open, and frankly I was looking for an extra leg-up in the late morning which did not materialize. At this point people are shutting things down to a trickle in preparation for the holidays, so we'll see if I take any steps as we approach close or possibly tomorrow morning if we show some resilience or added strength. Chessboard, Andy

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