Look at his recent call out today. Basically it comes down to earnings at this point, no matter how many articles comes out in the next few days its Earnings day and the CC which will send HIMX upwards. Until then we are in a mode of up and down. On Monday coming and forward that week into thursday we will see HIMX inch up and all the bashers will be gone for a while. Then of coarse in a couple weeks following they will be back but 10-12 by years end. nothing they say matters between now and then
Sentiment: Strong Buy
Since you mentioned CC's.
Aug 17,$ 8.00 strike if the stock visits 7.59 to 7.80 price points until expiration date, I am guessing my theoretical price for CC premium should be at $.50.
September 21/13 $7.50 strike price premiums, should be around $.98 by looking at historical option chart.
First off course writing STO (CC option) August 17/13 with $8.00 strike price, after that if you are still holding the stock (hoping never reaches $8 by expiration date). By then would have second chance to write (CC) options again for September 7.50 strike price.
By knowingly I am not selling ( STO )any contract on September $7.50 strike price before I write CC options
for August 17 with $8.00 strike price.
I am wondering on this subject how close your price figuration on premium as well as strategies compare to mine.
Thank you for the reply.
Harry Boxer and Shark Investing (Florida Guru) they both predicted cup & handle formation to be imminent but you know what happened today I still have great respect to both of them.
Sentiment: Strong Buy
If your a long term investor and you have done your homework, this is all just noise. I really like this story, but there is no way I am going to take a shot at this right before earnings with no price cushion for the unexpected. I am a trader , and as a rule don't take positions before earnings. The up and down Harry is referring to is on, but today's price action was horrible. There was some pretty good volume to the downside today . Call it day traders or whatever, but that action today makes me very suspect .It could be just bouncing around here between 6.27 and the low 7's ? That could be the case, but caveat emptor after today's price action.
If you are a trader, you should recognize the story with HIMX and buy in on weakness before earnings.
All the whipsawing of HIMX is related to two things as the fundementals are very strong:
- Institutional ownership was 9% at the 3/31/2013 reports. They want more shares and have the Market Makers doing everything they can do get them. How else do you explain the trading? They are shaking out weak hands on larger price movements in both directions enticing people to set sell stops which can then be hit.
- Innolux sold 25 million shares at $5.25 to finance their business expansion. These shares need to find a longer term hom and will soon after exchanging hands a few times.
Now, go look at the short count and you will see that it has not changed much. So, all these price movements are not about shorting. They are about trading and this is being driven by the Market Makers trying to accumulate shares for their institutional customers.
Next, consider the fairly recent and increasing number of bashers. Why? Market Makers and institutions know they have to get these shares before the next earnings announcement where Management can now talk about Google and will have more to say about their other customers and wearable tech.
HIMX did $737 million revenue in 2012 and earned $0.30/share without Google Glasses. They have a solid business. They raised their 2012 annual dividend (paid in July) from $0.06 to $0.25 as a show of confidence in cash flow.
Go to their site and look at their May Investor's presentation. See page 7 of their products and then their customers in each category. Now, name a major player not listed (NDA is Google). You will see Sony, Microsoft (both for gaming goggles), Samsung, HTC, Huawei, Foxconn (Apple), Logitech, Epson, Sharp, Levano, Asus, etc., etc.
HIMX will pop big on earnings and perhaps right before earnings. As a trader, you need to own now!!!!