Go look at the revenue and earnings projections before passing judgment. And, look at their margins.
I will agree that HIMX has run up fast but their earnings can support this price.
2011 was $0.065
2012 was $0.30
2013 projected for $0.42 (did $0.09 in 1Q & guided for $0.11 in 2Q); 40% gain over 2012
2013 projected for $0.62; 45% gain from 2013
So, at these growth rates, consider a 25 P/E and you have over $10 this year and $15.50 in 2014.
How many other stocks do you know which could double in 2 years..............while paying a dividend.
This stock was so undiscovered it was selling for under $2/share in November when I bought. And, it was also trading only 200,000 shares per day with ~14% institutional ownership (and one fund had most of this). AFter they did their investor's conferences in Feb/Mar 2013 and a few Seeking Apha articles, they trade over 20 times their previous volume. They were a 'Wallflower' stock in every aspect.
I still think it is an easy double digit stock this year and have guided for a very strong 2nd half.
And, it is much more than Google Glasses as they have a whole product array with blud chip companies..........and the Chinese 'White Box' manufactureres. Go to their website and look at the presentation they are showing investors over these next few weeks. But, within the head mounted displays, they have Microsoft (xBox) and Sony (PS4) as customers.
Again, what stock do you know which can give you 50% return per year?
Heck, you can buy the stock and get around $1 bid on the Dec $10 calls. that is a great return on investment (get $11 total if called and 12.5% downside protection).
Go and really look at the fundementals of HIMX. I do think the technicians who stage short attacks will go after HIMX and there will be volitility but I still think it is worth $15 two years from now.............and probably $10 by early 2014 (Feb when they announce their 4Q and FY 2013).
Thanks for the comments on HIMX as this is a big play for me although I have gotten into IMOS in a modest way (and see GTAT which I bought into recently.....as they did a great acquistion today).
A few things on HIMX which you may not realize.
First, look at the options. You can buy HIMX today at $7.60 and sell Dec 2013 $8 covered calls bidding at $1.40 which I have done. So, that gives me 20% protection on the downside and potentially 25% return in 7 months (40% annualized return).
Now, I also have to pay 40% short term capital gains tax (plus 3.8% Obamacare tax) or 20%
(+3.8%) on long term capital gains. I bought my HIMX last July, November and then Feb. So, about 40% of my July and Nov shares have Dec covered calls to 'lock in' my gains or provide downside protection while allowing the full 12 months to pass by.
My Feb shares and remaining July/Nov shares are still unhedged. I may hedge more of the July/Nov shares with more Dec $8 calls and then let the FEb shares continue to ride the upside.....or hedge them also when Options are extended.
But, there is a reason the options sell for what they do and this is because many people are bullish on them. They could be wrong but they are putting their money out there so they are generally more educated and informed than bystanders on the sideline.
If you look at earnings, 2013 estmiates were only raised from $0.40 to $0.42.......which is based on their penny beat for 1Q and their penny raised guidence for 2Q. Why no raise in 3Q & 4Q? So, I think they can beat this as will be at 5 investor's conferences starting next week. Note that HIMX was probably conservative when they raised 2Q by a penny as why guide so high you can beat or don't meet?
But, HIMX is also in the right locations and in the right markets and sector. They are a leading manufacturer and have been growing margins........due to volume and newer, noncommodity items.
So, I am partially hedged and partially riding some shares.
Has，congratulations on your gain in himx. I have no problem with himx long term prospective. However, without google glass, himx would stay undervalued for a long time. American investors like potential like story which google glass provides. However, your 25 PE may be valid if the growth is sustainable and nothing goes wrong. Himx may have a better and quicker return but also have more risk especially for people to get in late.
haschultz. You have never once looked at what the downside could be. Sure you will hit some home runs, but will also strikeout on many occasions. One could easily argue that they stock will drop 50% from here. It is in the hands of day traders and google glass. That is the only thing driving the stock now. The outlook for google glass ranges from the next iPhone, to a complete flop. I'm in the camp of a flop. I can't see many people using it in public. And when home, people will use a computer or tablet.
2 years is a long time. Every stock I own can double in two years. And the pretty well are at rock bottom valuations.
you can get that premium if you have google glass associated with it. But I would not put big money overnight since things could go either way pretty quickly. Himx should thanks Google glass to bring them to or over the fair value pretty quickly. Imost do not have Apple and Google, it will increase gradually by its true business underlined.