Hmmmm... Would not doubt that, but still have never seen the stock only take 1 hit. When there is more to be had, the market is pretty efficient at taking it. Appreciate the take.
Thanks Jar. There are still 2 weeks prior to earnings for games to be played. Freed up powder, but will be patient in pulling the trigger. My thoughts, some additional shorting here on the bounce back. Perfect set-up to pull the rug out again.
So to clarify, A stock with greater than 20% annual growth paying 65-70% of their earnings in dividends should be valued at less than a 10 forward P/e (and the forward estimate has little to no new growth products factored in). Well then, the entire market is 50% overvalued here....
Please clarify your definition of fairly valued.
Thanks for the full text Pagdyl. Saved me from having to find it. Whomever wrote that has a pretty good understanding of the HIMX business model. First time I've seen in pring HIMX refused exclusivity to Google. Does not make it fact, but makes sense in the long run.
The forward p/e of 14.5 is low especially given the dividend. But investors will look at the March to July time frame, and the reaction to this event and be cautious about entering. It is time for earnings follow through to take over and continue the demonstrated growth.
This was not an unexpected event.
Took an Initial position a couple days ago. watching and waiting to see if I add more. Looking at holding for a 12 month return at this point. I expect better than 50%.
Correct. And this is already overdone. Forward P/e is at ~12.5 (with a $7.00 price). And that is for an estimate that has none of the growth products with any meaningful contributuion. Div will be between .30 and .32 next year..
Agree. Time between option expire on the additional investment to the conference call will be short. Interesting choice of terms for Jay. Q4 flat sequentially. We are expecting a possible beat (I am) for Q3. I would be happy for the flat Q4 as it would show very good YoY growth.
You forgot C: The price of the stake in the subsidiary has no correlation to the price of the shares trading on the exchange. It is not HIMX stock.... Himx is profitable, with growing EPS. Even a sequentially flat Q4 would be a 22% YoY earnings growth for Q4.
Other that that, yes no change in near term sales.... Being invested for 8 years here, you already know that.
That was nicely said. The jury is out. But with the premium for quality graphics hitting stride, 4K TV as well, odds are pretty good they are somewhere. but definately a spec play.
There is no hard data to make a prediction on that yet. The quantity sold of the end device can be estimated, the HIMX sales$$$ and GP are the unknowns. Who knows who's module it is. Ovti could have been working on a package size reduction for their offering as well.
We wait and see. If this is validated, it could potentially be a nice short term offset to the share price if Google does not take their additional stake in HDI. Even better is it points to the R&D side of HIMX making inroads to the consumer market.