UNIVERSAL DISPLAY CORPORATION: GO LONG OR SHORT? CASE STUDY SOLUTION:

Taking the role of Matthew Crown and using only the information presented within the case,

Prepare an investment memorandum that addresses the following seven topics:

1. Recommendation. Do you recommend a long or short position, and why? What is your target Price (developed in Section 6, Valuation, below), potential upside, and time horizon for the investment?

2. Key Statistics. Provide a one-page summary (with supporting materials attached as an Appendix) that includes historical price performance, analyst targets, market capitalization, Average volume, trading multiples, dividend yield, short interest, and key operating metrics.

3. Investment Theses. Articulate the key points that support your long/short recommendation.

4. Investment Risks. Where might you be wrong, and how much would that impact the Recommendation? What are the mitigants that help you get comfortable with these risks?

5. Catalysts. What events in your holding period may push the stock price toward your target price as the Street converges on your divergent view?

6. Valuation. Value the company based on a discounted cash flow analysis. Relative valuations using comparable companies and precedent transactions (e.g., P/E, P/TBV, and EV/EBITDA) may also be useful. What are the key drivers of the valuation, and how sensitive is the valuation to those drivers? Which metrics does the Street pay attention to for the company, and why?

7. Target Price. Based on your valuation, what is your target price and the associated upside against current prices in making an investment? It is important for a pitch to include all of the above sections listed. Length is not the goal, but if a write-up is less than ten pages including exhibits, then it may be missing some key components.