LG Display (NYSE:LPL), Corning (NYSE:GLW), AU Optronics (NYSE:AUO) and Economics of Panel Industry

LG Display (NYSE:LPL) continues to struggle enormously, as well as competitors Corning (NYSE:GLW) and AU Optronics (NYSE:AUO) in the panel segment.

Recently Ticonderoga Securities made a statement that a lot are probably wondering about, and that is that the "economics of the panel industry simply are not there."

Assuming that's correct (and it probably is), this is a blow to those with heavy exposure to the panel industry, which continues to struggle to find footing.

On LG Display's recent earnings report, Ticonderoga said this, "...LG Display reported 4Q10 sales of US$5.73 billion that came in lower than our estimate of $5.89 billion. While sales declined 2% Q/Q on a U.S. dollar basis, the decrease was 3% Q/Q in Korean Won and compared to our flat estimate. EPS came in at negative $0.33 (lower tax was big benefit in the quarter) and was significantly lower than our profit projection of $0.13, as the company entered the red again after seven quarters. Keep in mind, the company recorded a $238 million operating loss related to litigation around price fixing and a loss of $150 million from operations. The LCD supply chain stocks continue to meander in search of a catalyst, in our opinion."

LG Display closed Friday at $16.26, down $0.46, or 2.75 percent. GLW closed at $19.33, down $0.05, or 0.26 percent. AU Optronics closed at $9.62, losing $0.28, or 2.83 percent.