20300244 Entry #5

Shares of LG Display Co. tumbled yesterday as worries over what analysts described as sapping earnings momentum overshadowed the company's better-than-expected performance in the first quarter.
Shares closed at 43,900 won ($45), down 4.98 percent, from a day earlier, against the KOPSI's 0.85 percent gain.
LG Display, formerly LG.Philips LCD, reported Thursday a record quarterly operating profit of 869 billion won during the January-March period. Sales stood at 4.04 trillion won.
Although the results were better than expected, some analysts cast doubt over future earnings, saying that a slowing U.S. economy and a price war among TV makers could hurt the market position of LG Display's key clients such as LG Electronics Co. and Philips and Vizio.
Goldman Sachs lowered its 12-month price target on the world's second-largest LCD maker by 2.5 percent to 52,000 won. BNP Paribas said in a report that earnings momentum will sag next quarter.
Analysts worry that the global LCD market could face a supply glut next year, bringing down panel prices. LG Display is scheduled to begin next year mass production at its factory in Paju, Gyeonggi Province, where the so-called eighth-generation production line is to be installed.
Despite the dim prospects, CEO Kwon Young-soo offered a positive outlook for the company and the global LCD industry, saying that the extent of the feared supply glut would not be as grave as some expect.
"Liquid crystal displays are becoming increasingly popular in more electronic devices other than TVs and computer monitors," Kwon said. LCD panels are widely used in TVs, computer monitors and some IT gadgets. The trend is creating new demand for LCDs."
He also said the demand for small-sized panels is growing steadily, as customers choose flat screen TVs over bulky tubes, even in the low-cost small-size TV segment.
Kwon said it is likely that operation of the advanced production line in Paju will start in January or February, one or two months earlier than planned.
By Lee Sun-young, Korean Herald
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My thoughts,
Should I believe the company or the analyst? In the journal there are two different views for the same problem. One is positive and another one is negative. They are predictions on the LCD sales. Both have supporting facts for their claim. However, there will be only one claim that is correct at the time they predicted. By the way, when we want to invest for this company, we as a normal people are lack of information. And we don’t want to just cast a coin to choose the right decision. On this journal, we don’t have 100% sure opinion. So my claim is that you should have business knowledge and your own decision making process to make your good decision even you have a lot of money and hired some good investors for you. Because there will be a time that you need to choose your decision from many good analysts.