Again, my compliments on your post. Understanding it is the key. Falls into a pattern for a while, then that pattern disappears. Another develops. Hopefully we adapt. This stock has dramatically increased the retirement in the last 3 years.
It's a twenty cent reduction... Guaranty it is still NORTH of here. Fundamentally, nothing has changed. The only thing that has is the ability to whipsaw this for the next 3-4 months. Q4 guidance was not good. Think about it raionally. Long term, this is a great stock. Short term, why not lighten up and park the money in another stock you like. Ready to buy back in (or not) if the opportnity presents itself.
Still going on Bottoms... K-dale ratcheted GSAT down to the ~1.60 Point from ~4.00. I have another bid in today CEO buying ~.5m shares over 3 days helps
Thanks Stimulus. you make a valid point. While an individual might not believe in the "voodoo", Many trade around it. Simply smart understanding what others potentially base their trades on.
Call, market cap does not inhibit HIMX ability to spend on R&D. Cash flow does. HIMX has more than adequate cash flow and basically no debt. The only way market cap would come into play in that scenario is the issuance of additional shares to fund these efforts. The reduced stock price would mean more shares needed to issue to raise the capital they are seeking. There is no threat of such dilution here.
The R&D is amply funded by income. They spend more on R&D than they earn. In a growth phase, that is good, but it must eventually fall to the bottom line. HIMX has not moved that to the bottom line yet through expanded revenue and profit.
Pretty much it... at least for the mid term here. The Q4 guidance was not good. earnings estimate for the year was .03 below current concensus. This is sideways for a while with peaks and valleys.
The estimates are not based on the GAAP #'s. So a .33 estimate and act of .58. That's a pretty good beat. If they continue at that rate of growth, or even maintain a steady .58/qtr, they will easily surpass the 2015 eps estimate. Closer to the high estimate in the consensus range.
He does have to walk a thin line. As an insider he could be seen as "attempting to influence the market". Buying increasingly more shares every day at a pricepoint in the middle is the best course and that is what he has done. He is a smart individual. Problems could come with a one day surge as you surmised. That would invite more shorting and less confidence in the price than a nicely suported gradual rise back to pre K day.