By Ross Young
If you had invested $1000 in a basket of panel suppliers' stocks weighted by market cap on May 2nd, you would have made 12% or $118 by last Friday August 12th as shown in the figure below, an excellent return in just over 3 months. The 12% return was double the return of the S&P 500 (SPY) at 6% and 27% better than the emerging market index (EEM), which has also performed well over this time on rising oil prices, up 9%. However, if you would have focused just on Taiwan panel suppliers, you would have made an incredible 35%, 6X the S&P and 4X the emerging market index.
Display stocks have popped which can be attributed to:
Panel suppliers and research firms expect supply/demand to remain tight through 2017 which should result in improved margins and continued gains by the index. Who are the biggest winners so far? The stock price results by supplier since May 2nd are shown in the figure below. As indicated:
Note, DSCC’s new Panel Supplier Stock Index is updated and analyzed daily and sent to customers who upgrade to the daily option of The Display Supply Chain Monitor. The Panel Supplier Stock Index is based on each company’s stock price and # of outstanding shares with the market cap calculated and weighted for each company in $US and updated daily. Contact firstname.lastname@example.org for more information.