The quotes from article referenced...
"“We suffer for the fact that Glass isn’t widely available, which was a deliberate choice,” Google Glass Marketing Director Ed Sanders recently told Forbes. “It’s fair to say the best way to change perceptions about the device is to put it on, but we haven’t been able to do that due to the sheer number of devices. When you put it on, misperceptions really do disappear."
"But the backlash, Sanders argues, is necessary in order to bring a truly disruptive technology to market. He also defended the high price point of $1,500, saying that it deterred un-passionate people from using it right away."
Those are the 2 items directly attributable to a google source from the article that is out there. Does not sound negative at all, actually the spin being put on it is the marketing is going as google planned. Pent up desire for the product due to limited time phased rollout.
We will see if HIMX comes out of their shell this CC. They did pre-release to help stem the tide. They do need to do what they can without violating any NDA's
Right now I would take 15 and move the money elsewhere. That's a tidy profit. Close the chapter and move on.
Hal, You are correct. Wu has done a brilliant job operationally with the company. Fundamentals are not broken here. This is just short term pain IMHO. You will go nuts if you sweat this stuff and should invest in funds.
Call does have a very legitimate point regarding Communications. Full understanding of the NDA issues, it can still be done. Without giving the details you can provide guidance more than 1 qtr in advance. Well really 35 days into that quarter.
They can use what they know, NDA's aside, to provide financial guidance. GIVE us your estimate for the full year. You HAVE a budget that provides that information. You are re-forecasting every month. Let us know.
Agree. And it makes much more sense than google, IMHO, for the following reasons:
1.) The industries HIMX services are after display quality (drivers) and camera superiority (WLO)
2.) Samsung currently owns display quality.
3.) Apple making a play for Renasas
4.) PLXW using an iPhone to display their processing capabilities (Apple wants the best display period.)
5.) Samsung needs to guard their position, Hey, Apple is buying their solutions, why not us?
6.) Both are flush with cash
Just my opinions on why such a deal would make sense. Hell, to go from $1 to 15 in slightly over 2 years...
Still don't think there would be a counter from Google.
Not saying they would. But this is a highly competitive industry. Everyone does R&D to take it to the next level. How long does leading edge last?
LOL, Got it, MR. Kahn.
Wu has done a great job leading the company. Companies grow up. They need to adopt to the changes. I love the fact this company spends $70m on R&D. It has produced a robust pipeline of desirable products (not simply a glass supplier). HIMX has done an admirable job of communicating these "concepts" to the investing world.
I have been saying for a while, HIMX has entered the "show me" phase. Unfortunately, Q1 will not be the quarter it is shown. Based on guidance, the pre-announced revs (in line), the best to be expected this quarter is 11% earnings growth (from .08 Q1 2013 to .09 Q12014) based on expected spend which the company has said will continue to be high as products are moved towards market.
I do not agree Mr. Wu needs to go. Simply that the company needs to provide more encompassing forward guidance. The current June estimate is $.13 for Q2 compared to $.11 Q2 2013. If the company simply provides guidance for Q2 on this conference call and it is in line with the current estimate, that will not be enough and the stock will stay flat or down through Q2.
It is not simply google glass that is fueling the pipeline, WLO went into production this quarter as well. The information is there to provide more color for the balance of the year. Why not provide some. If you want an example of a CEO who does an outstanding job at this look at Tom Guiterrez of GTAT (my second largest holding).
In the short run, none of this current price action matters. If you are astute enough to run your own numbers based on the information out there, you can make your own call.
I've made mine right or wrong. 12-24 months is the time frame to make the next decisions. For now, this is a hold and accumulate if you can. It is far easier for me to say that (avg price on the core shares is ~$2.5x), that a recent investor who would obviously be frustrated currently.
J, you get it. short term noise... and very much sector related. The pre-announce is hopefully , as you said, an indication the forward guidance will be expanded.
1.) Any guess at an expected date on the release is exactly that, a guess. Everyone assumes Google has "flopped" the launch. Look at the flip side, their strategy could be unfolding exactly as they wanted. Build anticipation.
2.) No reason to think they will change the dividend announcement at this point. It is a consistant timeframe that has no bearing on the future expected earnings. It is additional guidance on the balance of the year that I would LIKE to see announced.
3.) Wafer Level Optics (if it is what they say) will advance the quality and capability of future cameras. This is an area all small devices are clamoring for. It has the added feature of vastly reducing the footprint of the module required for the camera (weight). Another feature small devices need and want. Can I put a dollar amount on it? No, no where near enough information out there to value it. Purely opinion on my part (with enough data points to indicate the market is moving that way), I expect the market to be larger for WLO products than lcos.
As Kahn said, we can "jawbone" the stock price all we want. This does not change the fact HIMX has entered the "show" results stage. I for one, believe the results will be there. It is simply a matter of timing. I have time.
Might be nothing but Foxconn is a customer on the WLO side.... With the iPhone moving towards saphire screens, they need to save weight elsewhere... Again. conjecture on my part, but we all need to draw our own conclusions. 60m new iPhone 6's to be produced this year.