Why Himax Technologies Shares Skyrocketed

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Himax Technologies (NASDAQ: HIMX  ) have skyrocketed today by as much as 39% after an article on Seeking Alpha speculated that the company could greatly benefit from Google (NASDAQ: GOOGL  ) Glass and could triple.

So what: Author Mark Gomes claims that him and his research team have uncovered evidence that suggests Himax will be the primary provider of Google Glasss micro display. Gomes also cites commentary from Himax's last conference call as contributing to this view, as CEO Jordan Wu noted a "new and exciting head-mounted display application."

Now what: Himax also recently referred to large domestic software companies as possible customers, and the article says that Himax shipped 20,000 chips last quarter, which matches up with Google's announcement that Glass is expected to hit the consumer market later this year at a retail price point of under $1,500. Gomes also points to recent footage of the device in action, saying the panel looks identical to those offered by Himax. The author believes Street estimates will rise to factor in the possible Google Glass win, and calls for shares to triple.

Interested in more info on Himax? Add it to your watchlist by clicking here.


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Comments from our Foolish Readers

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  • Report this Comment On March 05, 2013, at 5:53 PM, ScottAtlanta wrote:

    Is Seeking Alpha known for, or rather, does it have a history, of allowing articles designed to "pump and dump" a stock?

    I don't get that impression, but when I read the article, I didn't know if I could trust it as a source since I'm relatively new to investing.

  • Report this Comment On March 05, 2013, at 6:40 PM, QuarkHadron wrote:

    ScottAtlanta,

    For the 'dump' side, peruse the DDD board for discussion of Seeking Alpha articles that looked intent on setting up short activity. As far as 'allow,' I don't get the impression that they filter at all.

    Regardless of whether the site allows such activity or not, I have to say the entirety of this article is pure speculation.

    I own HIMX and have for a while. It is a solid company. So, I'd be quite happy if the speculation is correct. But I'm not looking at today's gains as 'money in my pocket.'

  • Report this Comment On March 06, 2013, at 10:56 AM, ScottAtlanta wrote:

    Thanks QH -- I'm skeptical when I read any article...but some more than others. I'll keep that in mind with S.Alpha.

    Also, HIMX does look to be a good co. and now that it's down to pre-pump levels (up 30+% yesterday?!, now back to where it started 24 hours ago)...

  • Report this Comment On March 09, 2013, at 5:17 PM, Bhax wrote:

    The standards for contributing at SA are rigorous. You must be able to breathe and type.

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