The math on this one is pretty simple. Because Apple X demand is through the roof, according to all relevant reports, OLED plays are rallying. They’re rallying because there is a big shortage of OLED worldwide and anyone who helps in the production of OLED are likely to enjoy massive earnings beats.
A deluge of orders for Apple’s luxury phone has pushed shipment times into December, according to analyst reports from Drexel Hamilton and Nomura.
Apple told CNBC on Friday that “We can see from the initial response, customer demand is off the charts.”
Apple has directed its Taiwanese suppliers to double capacity in anticipation, according to a FactSet translation of a report in China’s Economic Daily News.
Inside Exodus, both RC and I had been positioned for this, me with COHR and him with OLED. He took profits today; I am still holding COHR.
Additionally, I bought UCTT — which, luckily, is down ~20% in recent weeks due to an earnings miss. They are key manufacturers for OLED and have been enjoying splendor for the past year and a half. I suspect, due to Apple X success, that splendor is about to turn into grandeur.
All that aside, chip stocks are sharply higher too, led by MU, thanks to a SNE upping their Capex.
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I bet people who bought online the first shipment could sell it unopened for double what they paid.
If true and ppl cannot wait to get their hands on iphone X, they are prime candidates for chip implants.
I also bought $UCTT via December $25 calls. Below 50-day and moving up. Find out how much I bank in Exodus.