Your probably saying this guy is crazy to say that himx will hit 15 by labor day (September 3) but let me explain. Everyone knows that himx beat on earnings, beat on revenue, increased future earning, increased future revenue and not to forget that they still have around 25million of buyback that needs to be complete. Him will announce in June their annual dividend & it will be higher than last year. All mutual funds that buy dividend will buy this company since the MKT cap is over a billion (minimum for most funds are 1 billion MKT cap to invest in the company). The company has increased their dividend which is a sign of growth & stock is over 5$ usual minimum price of a stock for funds to invest in. Earnings will be announced in august & it will also provide update on new clients & major development. All this says the stock is heading higher. Technical, fundamental & momentum chart indicate at least a 15.75 price on the stock. Good luck.
Sentiment: Strong Buy
Approved! Look NXPI competitor from $11 October 2010 to $33 April 2011. NXPI has a 2X the outstanding shares of HIMX with 250.05M. NXPI $30 today. HIMX $50-$60 long term target.
Sentiment: Strong Buy
Sbacchus, what other plays look optimistic to you. Your obvious a momentum investor and plan to take advantage of the bull market. I've been reading and the market will slide before the the 4th qtr. Are you preparing for that or do you think that will not happen?
Interesting and appreciate you stating your thought process. While I would love for that to happen, I think your timeframe is 6+ months ahead of schedule with these comments:
- There is ~$13 million left on the stock buyback (~$12 million spent in 2012). HIMX said they did not purchase any shares in 1Q 2013 and probably would not use this money as the share price is not severely depressed
- HIMX generally pays out up to 50% of the prior year's earnings (exception last year as the 2011 earnings were lower and they were showing faith in better earnings). As such, we should expect ~$0.15/share which is only around 2% yield but also a 50% payout. These alone will not grab a bunch of dividend investor's attention but 2% is respectable. They will get some attention for the 150% increase in dividend amount (was $0.06 in 2012) and 250+% share price increase since July 2012
- HIMX should do around $0.45 or so in 2013 which means the dividend in 2014 should be around $0.23 which again is only 2.3% of a $10 share price (and only 1.5% of your $15 price); again 2.3% is respectable and the rising dividend amount, yield and share price will get some attention (but this is now mid-2014)
- HIMX will probably report around $0.125/share for 2Q 2013; a penny above expectations but a nice 33% above the year ago quarter and 50% above the seasonally slow 1Q. But, this may get them a 20 to 25 P/E on an updated $0.45/share 2013 estimate but that is still only $10 to $11.25.
- HIMX will provide a bullish outlook for 3Q and 4Q but that is already expected and needed to make the $0.45/share.
As such, I expect HIMX to be around $10 share around Labor day (25% increase from here) and finish the year another 20% higher around $12/share. I do think they will end 2014 around $15 or so which is 110% from here and only 19 months away. That is about 5.75%/month gain which is reasonable.