Investors in Pain
If you thought Apple longs had it bad, did you check out Himax Technologies ($HIMX) this morning? The stock plummeted nearly 9% after–no, not disappointing earnings–an analyst downgrade.
Himax is a fabless semiconductor company. For those not-versed in geek speak, fabless means they outsource the manufacture of the chips. Basically they’re tech designers and marketers. Specifically, they design really tiny chips for touch screen displays–the kind that could be used in flat panels or futuristic products like television projectors that fit on a wristwatch and computer headsets like the upcoming $GOOG glass. The Taiwanese company also boasts 2,000 patents.
Longs have largely been excited about the stock because of the promise that Google’s headset and other futuristic technologies will become common-place.
Jan. 28 at 10:04 AM
AskLouJan. 28 at 9:47 AM
$HIMX no plans to sell on near term results. I’ll wait until the media covers the folks lined up for Glass when it’s released to the public
But analysts deflated some of that enthusiasm today. Jay Srivatsa at Chardan Capital Markets downgraded the stock to neutral with a $12 price target. The stock dropped a dollar shy of that target earlier today. It has since recovered some of those losses and is now down about 6.5%, trading at $13.56
Srivatsa’s thesis is that $GOOG glass and other computer headsets won’t live up to the hype. The masses won’t walk around with like cyborgs with little devices pinned above our ears or affixed to our spectacles anytime soon. And, according to his report, Himax’s main display business is facing more competition which could squeeze margins.
Some stocktwits investors painted the analyst as a killjoy who fails to see the promise of innovation.
Jan. 28 at 9:52 AM
$HIMX on cnbc they showed about 5 pairs of gg with the new frames. Look like real pair of glasses and not
The company reports earnings on Thursday, February 13, 2014 at 8:00 a.m.
~ Catherine Holahan (@cholahan)
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