I also have been focused very much on the Apple suppliers and bought shares (and sold Jan 2015 Puts which is bullish) this spring in RFMD, SWKS and NXPI to go along with my TQNT from Jan 2012. I have now sold TQNT but still hold RFMD, SWKS and NXPI who all beat on earnings and guided higher.
But, I am not pumping those stocks as they have already made their big moves. I would like to hold these a full year may sell if there is a big move up after the Apple iPhone6 teardown as I don't feel good about the markets in 2015.
First, sbacchus and I are different people. We have never met but he is an east coast guy while I am/was west coast and traveled to the Middle East for work. I am now retired and enjoying it immensely.
I was in GTAT since it was at $4 in June 2013 but I don't recall pumping that here. In fact, I cautioned others who wrote to me about it............but I know how to deal with volatile stocks and sold out on Tuesday with a very nice gain......but obviously not at the peak. Since, 300% over 16 months is nice as it also qualifies me for long term capital gains taxes. Since I seem to know more about what happened and is happening with it, it stays on my watch list as there is a chance it resumes it way to $30 in 2016. I may be selling some Jan 2016 Puts on it again where there is more clarity.
As for HIMX, you obviously don't read all of my posts. Rarely do I tell people to buy it. I do give my thoughts on it. And, I did post and traded a few notes here on 12/31/2013 and early Jan 2014 saying that I sold $20 calls as HIMX had run up way to far and way to fast. I got over $2.50 for the $20 calls..........and then sold my HIMX when it sold off. Again, I did not sell at the peak but I did buy starting in Oct 2012 below $2 so was happy with my gains and long term capital gains taxes (and dividends). I did not completely understand why...........but when the market moves against you and your thinking, it is best to sell until you understand.
I started buying back into HIMX to get the July dividend and bought right up to the day before the record date. Thus far, it has worked out well for me and I think we will see HIMX start moving in October and early November; in a run up to earnings. But, I plan to hold long term.............unless the market moves against HIMX in a meaningful way as once a winner, you should never leave a loser.
You can think what you want about me & sbacchus but he is an expert at reasearch on HIMX and I appreciate his efforts.
You posted almost nothing...........other than to reveal that you still haven't learned to use the ignore key.
And, there are still many questions I posted for you to answer.............but you choose to show how you still haven't figured out how to use the ignore key.
I think you like reading sbacchus's posts............or are really computer illterate!!!!!!!!!!
In addition, notice how many companies were able to adjust to the changing economic times and stay profitable. But, not the government who ran huge deficits...........and even run fairly large deficits in good times.
Corporations try to continuously improve and reduce costs. The measure important things to ensure their products are quality and they are advancing as desired by customers and the markets.
The government doesn't do any of this..............and demands you pay them and use their services for the most part. Why not charter schools and inject competition into education? Why not run the USPS like a real business (and charge more for long distance mail vs. local mail).???
The governments answer to nearly everything is more money. Just throw more money at it. Don't ask if we are getting our money's worth or should end/combine programs.
One classic is some farmer asked Obama about dust regulations and he said to contact the local EPA. Well, one reporter did. They were told to call some other office who told them to call some other office who then told him to see what he could find on the EPA website.
No clear answers............but lots of uncertainty.
I won't even get into baldfaced lies by both parties.
But, my hat is off to the many companies and company officials who adjusted with the economy and stayed profitable..........and continued to improve their products and lower costs where possible.
Profit and self interest builds the iPhones as no one ten companies could do it. And, all these companies compete to supply Apple to make profits. And, people work for these companies so they will have money to buy an iPhone and whatever else they choose to trade their skills and labor for.
Some regulation of companies and environment is needed but...............
I would like to see the uptick rule come back on shorting..........and better tracking of naked shorts.
Note that Wu stated this at the 2Q 2014 CC in July and he is talking about a new LCoS with increased power efficiency which negates the battery issues in the Google Glass which was based upon the older generation LCoS chip. Not saying it is solved.........but new testing is needed.......and a replaceable battery could easily remedy.
And, with a new LCoS product release in late June 2014 and Wu stating that they are still working with customers who fund the development...........I doubt they are getting out of the LCoS business.
Finally, you never discuss why Lenovo, Lumus and Optinvent already selected HIMX over EMAN..........and there is also an automobile market when costs matter..........but battery life doesn't.
Furthermore, in June we unveiled the Front-Lit LCOS technology, our latest, proprietary and patented LCOS offering. We presented the cutting-edge design for the first time to the public at the SID Display Week Conference in San Diego. The new design represents one of the biggest technology breakthroughs of the head-mounted display industry. Our proprietary Front-Lit LCOS module enables an ultra-compact and extremely power-efficient optical engine by consolidating two major components of optical engine and integrating them into the micro display module itself.
Presently, we are engaged with multiple tier-one customers in developing head-mounted display products using our Front-Lit LCOS technologies. After testing several competing technologies, these tier-one customers selected Himax’s Front-Lit LCOS due to its superior overall performance. We believe our LCOS micro display business remains an exciting and significant long-term growth area for Himax.
No, I am fine with reasonable and intelligent discussion. I was just wondering why you selected only the one point about Google buying a hardware company as I did not even make that a major point (I do use that more when people mention Apple). But, the Google purchase of Motorola was really around the patents and, after their experience and then sales of the Motorola hardware division might be even lesser inclined to buy a hardware or chip company.
But, to summarize, I do not see Google or really anyone buying out HIMX due to:
+ Wu's being completely being on-board with it as the control over 30% of the shares
Then, if the Wu's were willing, I think other companies could extract more value from HIMX:
+ Revenue considerations: Google can not put as much value on the company as other chip manufacturers as Intel, TWEM, etc., etc, could get much more value from HIMX's entire product line (and that line is extensive) as they are in the chip manufacturing and sales business..........and already sell to nearly everybody
+ Operating Expense Savings: Google would get very few cost savings (generally termed synergy) from buying HIMX as they would need to keep on nearly all the sales force, the chip engineers, the R&D process etc., etc, as the don't really have these whereas Intel, TSEM, etc., etc. have chip sales force, chip design engineers, chip R&D expertise, etc.,
So, anyone buying HIMX would first need the blessing (voluntary tendering) of the Wu's shares and then be willing/able to continue to extract value (sales, R&D, etc.) from the entire product line and sell to all comers...............with these last few more aligned with what Intel & TSEM do.
HIMX did sell a portion of Himax Displays to Google but that was around getting funds to build up/out their LCoS manufacturing plant (they do not outsource this as they do their other lines) AND since it probably cemented a relationship on a new product.
Are you just trying to pick arguments here? Lucky I am retired and have some time.
Read the news releases on the Google purchase of Motorola. Most say it was for their library of patents. Sure, they tried to make something of the hardware and failed and SOLD THE HARDWARE END BUT NOT THE PATENTS.
Do you not think Google learned something by this...........or do you still touch a hot stove to see if it burns????
Notice that this was not my sole reason either as I also posted that the Wu's own ~30% of the company and that other companies can probably extract much more value from HIMX and thus Google may not be able to offer enough to buy it.
Life is generally about the confluence of factors.............just like Google's purchase of Motorola and why they probably won't buy HIMX. But, if they did, we would see at least a 25% bump in price............although I think HIMX appreciates that much in a year.
Finally, I don't want to argue minor points here. If you want to discuss HIMX in a meaningful way to help us both increase our knowledge, then I am fine with that. Read Jaret's first SA article on HIMX as it is much more wide ranging that LCoS. Go to the HIMX site and review their Investor's Presentation as it is being given in Taiwan this week and was given at the Brean New York conference last week..............when HIMX has a few big trading days. Coincidence???????
Sorry to confuse you with Frankenberrylives and I fully understand the insult you probably felt.
What you post is valid.....in fact, I also tried to make your same point that "technical superiority never guarantees business win" and that applies on several levels including cost, already established business ties, prior work together, luck, etc.,
Your post above is actually decent but I am not going to get between you and Jaret on disagreements. I did call the article good and stand by that....at least until I am fully aware that there are meaningful falsehoods....although I doubt the were intentional. Did you read his first article (linked)?
But, the basis of my HIMX position is all the things you did not address. Reread my post. The basis is still that, in addition to a great current business, popular products and outstanding client/customer list, there are several companies who have selected HIMX LCoS....THAT WE KNOW OF.
If you read Wu's comments which I posted earlier, there seems to be others who have approached HIMX and are paying the development costs. Sometimes just that sort of knowledge can cut through the BS to mean something.......as it also means that people, both smarter and with a business stake, have made a decision to work and use HIMX LCoS.
Sure, in the future other things will come along and supplant this generation of LCoS. These may come from HIMX or someone else. But, the fact remains that people are coming to HIMX.
HIMX camera arrays & WLO's are complementary to LCoS as they can address the gesture controls which are needed along with touch and timing controllers which HIMX has expertise and widely used products.
Finally, why did HIMX select to go into LCoS? Were they just stupid about OLED? Did they commit before researching potential? Did they want to strike out in a new direction without knowing it was dead end? I don't know..but there are niches for most.
I want to be right.....but not dead right.
Hey stigereiec & Others with similar thoughts,
Just to 'keep it real', note that the insiders at HIMX (the Wu's) own around 30% of the shares. That makes it very difficult for anyone to take them over if the Wu's don't want to sell.
And, I am not sure the Wu's are motivated by just money as they are already very wealthy.
So, any takeover has to go through the Wu's and have their blessings or there is no chance of it happening.
Finally,, they were willing to sell a percentage of Himax Displays to Google for a few strategic reasons (strategic partnership, cash to build out LCoS plant, etc.) but selling a smaller amount of one division for a strategic partnership is very different than the company being taken over.
Finally, I just don't see Google as the best fit even if one happened. The company who could put the most value on HIMX would be someone who can make the most and that would include continuing all product lines and selling to everyone. As such, I see someone like an Intel or TSEM, etc. as they make chips and they sell the chips to the entire world..............so they could get more value out of HIMX than Google who wants only a portion of what HIMX has............and is not in the business of selling chips to others............and doing future R&D for future sales.
I don't feel like continuing this as you set up straw man arguments yet don't address the real issues. If you don't want an honest discussion where we can help each other learn, then I am onto something else.
My points continue to be, if you want to address them are:
- Companies are coming to HIMX to work on product development.....after doing a market analysis of what is available (see Wu CC comments)
- Lenovo, Lumus, Optinvent and probably Navdy chose HIMX LCoS. They are after Augmented Reality. They know about EMAN and then came to HIMX. Technology is not the only reason either. There is co-development, focused R&D and manufacturing ability......and then complimentary products such as touch/gesture/timing controllers, etc., etc. You act as if display is the only thing
- Yes, EMAN share price tells me something......about the current state of EMAN business and the overwhelming majority of people's opinion of their future prospects. I don't care to 'be right' if I am the only one 'right' and no one else 'gets it' so that the share price langers. I want to beat the crowd.......but I want others to recognize the huge business potential and I don't see that happening to a great affect in EMAN.
- Look at where EMAN was, is and is going. Estimates were raised slightly this year for a loss of $0.15/share but lowered next year to a loss of $0.04. There is some projected revenue growth but to a still minuscule $32.7 million for the year. The main stream institutions and funds will not touch this until it is well over $100 million per quarter!!!! So, if EMAN is so great, they are not selling much and will not attract the larger buyers which will push the share price up. HIMX has a huge business before LCoS and has other groundbreaking R&D/upcoming products like CMOS and then WLO's.
You don't have to invest in HIMX if you don't want...but you should read Jaret's first article on HIMX (wider range) and see Investor's Presentation.
From the June 2014 PR for the latest generation LCoS. Note that HIMX has a great business outside LCoS.
There is a reason people are coming to HIMX, working with HIMX and many times paying the Development cost (as per conference call). There is also a reason EMAN is the price it is.
" the Company introduced an integrated LCoS microdisplay module called Front-Lit™ LCoS. Himax’s proprietary Front-Lit™ LCoS module enables an ultra-compact and extremely power-efficient optical engine by consolidating two major components of optical engine and integrating them into the microdisplay
1) the LED illumination system, and 2) the polarization beam splitter (PBS). Himax’s new Front-Lit™ LCoS design considerably reduces the size while greatly improving the power efficiency of the entire optical
Equally important, the proprietary design also enables a much simplified optical engine design and assembly process, thereby lowering customers’ optical engine manufacturing time and costs. Himax’s Front-Lit™ LCoS is unique in the market and has been patented by the Company. Himax’s Front-Lit™ LCoS has met the accelerating specifications of head-mounted technologies’ display requirements such as a rich and bright image, a compact footprint, and low power consumption.
Front-Lit™ LCoS produces over 10,000 nits of brightness and more than 50 nits/mW efficiency - the highest recorded ratio in the entire industry. The module also unites several new head-mounted technology requirements. These are: 1) a simplified optical engine manufacturing process similar to OLED’s, 2) the high light efficiency of LCoS and, 3) the flexibility to adapt to various resolutions of LCoS. According to Himax’s HDI team, Front-Lit™ LCoS is receiving significant interest by conference attendees including Himax’s current roster of LCoS design clients and new entrants into the augmented-reality (“AR”) and virtual-reality (“VR”) technology space."
Lots of Calls being bought..............including 2,341 contracts (234,100 shares) at $35 strike price for Jan 2016 (yes, 2016 when GTAT should have proven Hyperion automation, SiC, etc.).
And, the last trade was for $1.95/share. Heck, I should consider buying more GTAT just to sell covered calls as that gives you more than 10% downside protection and over 100% upside gains.
I noticed the same full moon last night enjoying a cigar on the patio looking at the clouds moving among the mountains. Sure is great to have a view.
Didn't Neil Young have an album by your message title?
Hey rtstarrazyhoo (& others who don't notice things well),
Apple did not buy GTAT as Apple prefers not operate factories, etc. They buy components and contract out work..........even the assembly of their phones, pads, etc. So, they partner with GTAT and tie up the sapphire coming out of Mesa..............unless they choose not to buy it in which case GTAT can sell it at higher prices to others.
The bottom line is that GTAT just needs to keep focused on turning out lots of sapphire boules in Mesa as they can sell it.................mostly to Apple.............but then to others if Apple chooses not to buy it.
But, Apple doesn't buy factory/assembly operations...........in case you hadn't noticed.
Glad you recognize that the message/messenger can be good, bad and/or indifferent on SA & other websites. Just keep your BS radar up.
Below is the transcript from SA on HIMX 2Q 2014 CC by CEO Jordan Wu:
Bottom line is HIMX LCoS is being selected........and HIMX is a great company with good products, earnings and other newer products (camera arrays, WLO's, CMOS, etc.).
From Wu (before Lumus & Optinvent)....& Google Glasses using these per video) :
"As many of you know, our LCOS business has been very exciting, and also very dynamic. We continue to work with multiple customers, including some top-notch names on multiple designs simultaneously. Many of these projects involve custom-built designs that are funded by our customers’ development fees.
Now after a lengthy cooperation and research and development period, we are pleased to be able to announce publicly that Himax and Lenovo are also partners for wearable device products. Himax is supplying LCOS micro displays for a variety of Lenovo’s products......
...in June we unveiled the Front-Lit LCOS technology, our latest, proprietary and patented LCOS offering. We presented the cutting-edge design for the first time to the public at the SID Display Week Conference in San Diego. The new design represents one of the biggest technology breakthroughs of the head-mounted display industry. Our proprietary Front-Lit LCOS module enables an ultra-compact and extremely power-efficient optical engine by consolidating two major components of optical engine and integrating them into the micro display module itself.
Presently, we are engaged with multiple tier-one customers in developing head-mounted display products using our Front-Lit LCOS technologies. After testing several competing technologies, these tier-one customers selected Himax’s Front-Lit LCOS due to its superior overall performance. We believe our LCOS micro display business remains an exciting and significant long-term growth area for Himax."
You are over-generalizing and over-simplifying.
There are some really good article and authors at Seeking Alpha..........along with misleading and error prone articles..........just like there is lots of garbage here on Yahoo...........which you seemingly bless with your presence!!!!!!!!!!
Note that Seeking Alpha has a more rigorous editorial board so generally that is superior to what you see on Yahoo Message Boards (and even Barron's Online which is just as misleading at times).
Then, if you were informed, you would realize that end use and pricing is not all the same nor should it be. But, you oversimplify like they should be similar.
Good article on the focused LCoS component of HIMX. You may have been writing this yesterday (or watching football) while I had some give and take with frankenberrylives as you can read below.
I wrote a detailed response on the SA site to discuss the HIMX touch/gesture/timing controllers which are supposedly be used to great impact on Occulus Rift product where the timing lag is virtually gone and reducing the 'nausea some people were experiencing. These will probably be used on many HUD's/HMD's and other products.
I also comment on Navdy who is accepting pre-orders for auto mobile (great intended pun as it is a mobile product for an automobile) unit on their site.
Finally, as I also comment on the SA site, I recommend that people re-read your prior article on HIMX as that was a good overview on the company as opposed to this article focused on LCoS.
There is no longer any need to make any predictions here on what gets used. We will all know tomorrow.
We should be spending time thinking of strategies to profit from the news we do get.
As for me, a long from June 2013 at $4, I know sapphire is going to be getting used more and more with each passing quarter...........AND THAT GTAT IS MORE THAN JUST APPLE & SAPPHIRE. So, I will be holding for the longer term.
As for iWatch and wearables, it is rare when the first permutation is successful............but these are coming and will get better and better with each model. So, these first steps are absolutely necessary as they get us closer to the 2nd, 3rd, 4th generation which are really great products. Think how many had the 'brick' cell phone vs. how many now have smart phones today.
Same thing with wearable. I want a watch (wrist or pocket) which has the CPU and radio and the Glasses with the display. I don't want an ever increasing size phone just to get a larger display. Glasses, using pico projectors, are very small...........but appear to be like a larger monitor as it is close to your eye..........and speakers close to your ear (or bone conduction near your ear).
Two answers for you on your question about who made the sapphire for the camera lens and touch button:
1) Go read the conference call transcript on Seeking Alpha and you will discern the answer........and much more information
2) It is still a world market for sapphire............just like with oil, gold and other things in limited supply. Even if someone else had supplied this sapphire, that entity would not have supplied some other demand which would then have been met by GTAT. There is no stockpile of sapphire piling up that wasn't ordered. So, all the sapphire is being sold and that really is all that matters.
But, you should not be investing in GTAT if you don't know the answer...........or should not have bought without doing your research FIRST!!!!!!!!!!
There are several ways of looking at this.
Nevada is giving tax breaks and not cash. If Tesla located elsewhere, Nevada would not get a penny from the factory. Now, they stand a chance of getting something.
Think of it as Tesla incurring a tax bill of billions and Nevada is forgiving $1.25 billion of it. The cash flow is never negative as no cash goes to Tesla; only a reduction is the taxes they would owe.........and that would be mostly from property taxes as Nevada doesn't have a state income tax. Without Tesla, this property would stay undeveloped and the jobs and economic activity to build the factor and improve the property generates something for the state of Nevada.
And, jobs are something as those people will spend much of their paychecks locally.
Now, I am not saying I would do this................only that I think I understand the state of Nevada's reasoning. Sort of like how you might be willing to rebate me $1.25 billion of some amount more than this I am willing to pay you............but only pay you if you agree to rebate $1.25 billion of this.
The wiser structure would be to limit the rebate to something like 50% of annual property tax payments rather than 100% rebate until the $1.25 billion is paid.l