HIMX

Stock Talk

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Please an opinion on today's stockprice development of HIMX?

Igor Greenwald

Igor Greenwald

I’ll have a lot more on HIMX later today, but short story is that the pullback after the initial earnings pop is indicative of current bearish sentiment on this stock amid cyclical weakness in its key markets. I expect more weakness near-term, but wouldn’t panic if it comes to pass.

Igor Greenwald

Igor Greenwald

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Dear Igor: whats up with HIMX after today’s decline of 6%? Any new advise or opinion on them? Thanks for a reply!

Igor Greenwald

Igor Greenwald

I don’t think it’s anything more than a bit of overdue volatility; last week was bad for techs, this one’s starting better. Earnings were OK, the thesis remains the same and I’d recommend tuning out the day-to-day noise.

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Igor: thanks what can we expect in the near future?

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Good Morning Igor: HIMX now at 10.00 . What’s your advise now with the recent HIMX/QUALCOM announcement, what´s your target for HIMX?
Thanks for a reply, rgds

Igor Greenwald

Igor Greenwald

Still a solid Hold. Jim Pearce wrote more about the Qualcomm deal this week: https://www.investingdaily.com/personal-finance/articles/39487/himax-jumps-on-qualcomm-deal

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Igor: would it be possible to publish this HIMX comment on this page? Thanks you!

Igor Greenwald

Igor Greenwald

This is from Personal Finance:

Shares of Himax Technologies (HIMX) have gained nearly 30% over the past five trading sessions after the company announced on August 30 that it has entered into a joint venture with Qualcomm (QCOM) to work together on a new high-resolution camera for mobile computing devices. HIMX has more than doubled in value since we added it to the PF Growth Portfolio less than eight months ago, while QCOM has declined by 10% since being sold out of the portfolio seven months ago.

According to the press release announcing the partnership, “The collaboration brings together Qualcomm Spectra™ technologies and expertise in computer vision architecture and algorithm with Himax’s complementary technologies in wafer optics, sensing, driver, and module integration capabilities to deliver a fully integrated SLiM™ (Structured Light Module) 3D solution.”

What this means in plain simple English is that Qualcomm is going to use Himax camera technology in its smartphones to take advantage of growing demand for apps requiring 3D (three-dimensional) graphics. It’s not just video gaming that is driving this demand; new apps are being developed for a wide variety of functions and industries.

The timing of this announcement coincides with the anticipated introduction of the new Apple iPhone later this month that will include a number of 3D apps. There is a lot of money at stake over which phone provides the better 3D experience. Until now, Apple’s stranglehold on the smartphone market was virtually unassailable due to the emphasis on style as much as substance. But if Qualcomm and Himax can produce a substantively better product, then even a few points of market share shifting in their favor can a huge impact on the bottom line of a small-cap stock like Himax.

Himax is now trading far above our buy limit of $7.50 and well below our target price of $15 so it is a hold.

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Thank you! Would you raise the target price?

Igor Greenwald

Igor Greenwald

Not at this time but as I noted it’s a solid hold

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Igor: in the portfolio is not anymore mentioned the limit for HIMX, any reason?

Igor Greenwald

Igor Greenwald

HIMX was lowered to Hold in May (https://www.investingdaily.com/breakthrough-tech-profits/alerts/31250/low-ebb-for-himax-himx-lowered-to-hold), so that’s why there’s no Buy limit. It’s been remarkably steady this summer, though, and that’s a decent short-term omen.

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https://seekingalpha.com/news/3290930-qualcomm-developing-3d-depth-tech-q4-mass-production
Igor: what’s your opinion on the above with regards to HIMX? Now at 8.86!!! Thanks for your opinion!

Igor Greenwald

Igor Greenwald

I don’t think it’s immediately material, but Qualcomm and Taiwan Semi is great company for Himax to be in and to partner with.

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Any updates on HIMX? Today back to 10.27!! Whats the outlook?

Igor Greenwald

Igor Greenwald

I didn’t see anything substantial last week besides the already discussed Qualcomm tie-up and some call buying, perhaps on hopes of a takeout by someone like Broadcom next year. But that’s ;all highly speculative and in the meantime I didn’t want you chasing the price.

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So we are going for your target price 15??

Jim Pearce

Jim Pearce

The $15 price target for HIMX was set by me in Personal Finance and not here by Igor, and that is still my price objective for it. However, HIMX is a highly volatile stock that is subject to wide price swings so it could easily drop back below $10 before it gets there. If you are not comfortable with that level of volatility then you have the option of placing a stop order beneath at whatever price you feel is as much risk as you are comfortable taking.

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Jim: Thanks for reconfirming your price target. Would you raise it with the information available recently on HIMX?

Jim Pearce

Jim Pearce

No yet. First, I want to see empirical evidence that the many promised Himax has made are coming true, which may take another quarter or two to establish. If and when I do change my guidance on HIMX it will be noted in the Growth Portfolio table of Personal Finance.

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Thanks for your reply. I have no access to the growth Portfolio table of Personal Finance, but i did get into this HIMX recommendation from you aprox a year ago because of Breakthrough Techprofits. So please let Igor then take the lead for members of Breakthrough Tech Profits on HIMX, especially what the target price should be according him, as Igor took over Brealthrough Tech Profits from you? Thanks for a reply and an update!

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HIMX 10.45 now! Further CRAMER opinion on HIMX is risky. Any comment on this from your side?

Jim Pearce

Jim Pearce

John Persinos

John Persinos

As for Jim Cramer’s opinion on HIMX, allow me to add this historical perspective. Come to your own conclusions: https://www.youtube.com/watch?v=V9EbPxTm5_s

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Thanks for this amusable video!!! Anyhow would like to receive an opinion from YOU on the actual down-movements in HIMX with very high volumes these days? What can we expect? Thanks in advance!

John Persinos

John Persinos

Sure, but I’ve already answered your question within this comment thread. I’ll continue to monitor the stock, of course, and keep readers apprised of any necessary recommended actions.

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Today it is up a little bit, but these downtrends of 7% with a daily volume of 20 million shares is not nornal. 3 times the daily volume!
So what’s all behind these extreme down-movements?
Could we go back all the way to 5 again?

John Persinos

John Persinos

Technology, especially the fiercely competitive VR/AR space, is inherently volatile. Small cap stocks like HIMX can get whipsawed by rumors and unwarranted pessimism. We don’t discern any rational reasons for the latest volatility. We still think the stock is a solid long-term bet and we’ll let you know immediately if and when our view changes. Just sit tight and follow our portfolio updates.

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Igor: any remarks on today’s sell off -7% with aprox 20 million shares?

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Igor: what’s up with HIMX? Today it looks like another sell-off!?

John Persinos

John Persinos

I’m on the BTP team; I’ll answer that question for you. HIMAX competitor Silicon Motion (NSDQ: SIMO) recently issued very encouraging third-quarter preliminary results, but it doesn’t change the favorable long-term picture for HIMAX. We understand your concern and appreciate your question. But we don’t advise following stock price movements day by day, hour by hour, or minute by minute. That’s especially true for inherently volatile small-cap tech stocks such as HIMAX. The fundamentals remain bullish for HIMAX over the long haul, as exemplified by this research report: https://www.strategyanalytics.com/access-services/devices/mobile-phones/emerging-devices/market-data/report-detail/global-smartphone-3d-imaging-enablers-forecast-2016—2022#.Wd4yuRNSyCR

Beatriz Taylor

Beatriz Taylor

What stock do we buy now??

Igor Greenwald

Igor Greenwald

On the small-cap and risky end of the spectrum among portfolio buys, I would point you to Microvision (MVIS), and on the megacap end to Alphabet/Google (GOOG) .

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Igor: what can we expect now from HIMX, trading at 9.50 ??????? Any update?

Igor Greenwald

Igor Greenwald

There’s really nothing to update. Stock prices go up, stock prices go down and there’s seldom a particular reason for any of it on a given day. The price is set by supply and demand, and different people have different reasons for buying and selling most of the time.

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