Why Himax Technologies, Inc. Shares Tumbled Today

Is Himax's drop meaningful? Or just another movement?

May 27, 2014 at 6:35PM

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) fell nearly 14% Tuesday following unconfirmed reports that Google (NASDAQ:GOOGL)(NASDAQ:GOOG) may no longer be planning to use Himax's display chips in the upcoming wearable Google Glass product.

So what: Himax shares were still reeling from weaker-than-expected quarterly guidance earlier this month, but I previously noted shares looked attractive given Himax CEO Jordan Wu's insistence the guidance miss was only a temporary lull from a certain customer's inventory position. And remember, Himax's opportunity in wearables like Glass stood a big driver behind significant positive analyst notes earlier this year.

Now what: Keeping in mind this news is currently just speculation, such a development would be particularly surprising since Google took a 6.3% stake in Himax last July. The deal also called for Himax to prioritize its display-related investments, and provided an option for Big G to increase its stake in Himax to up to 14.8% any time over the subsequent year through preferred share purchases.

In any case, I'm not holding my breath for Google and Himax to part ways just yet. But until we hear otherwise, Himax shares will likely remain under pressure.

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A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

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