Today, only a month after raising his target price for Himax Technologies (March 10), Northland Capital Markets analyst Tom Sepenzis changed his mind and lowered his price target from $20 to $15, “as a large South Korean customer has pulled display driver orders for the remainder of the year.”
“IF” there’s any truth to this story can we assume that “selective disclosure of material nonpublic information by HIMX was released to a selective group”. I’m guessing their compliance officer wouldn’t allow it, so there’s something about the story that’s not completely true or right IMO.
Regulation FD (Fair Disclosure) is a new issuer disclosure rule that addresses selective disclosure. The regulation provides that when an issuer, or person acting on its behalf, discloses material nonpublic information to certain enumerated persons (in general, securities market professionals and holders of the issuer's securities who may well trade on the basis of the information), it must make public disclosure of that information. The timing of the required public disclosure depends on whether the selective disclosure was intentional or non-intentional; for an intentional selective disclosure, the issuer must make public disclosure simultaneously; for a non-intentional disclosure, the issuer must make public disclosure promptly. Under the regulation, the required public disclosure may be made by filing or furnishing a Form 8-K, or by another method or combination of methods that is reasonably designed to effect broad, non-exclusionary distribution of the information to the public.
DANFINN51...I don't think we can assume that. I have email to Tom Sepenzis at Northland Capital asking him for details but I suspect he is going to come back and say he got the information from the South Korean customer of Himax, not Himax itself. He should identify the customer. If he returns my email.