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Papa of Four
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  • HImax(HIMX) Undervalued Earnings Next Week 1 comment
    Aug 2, 2012 1:03 PM | about stocks: HIMX

    So, on July 9th the company reaffirmed guidance.

    "Himax expects to meet its second quarter guidance with gross margin of approximately 23.1% and GAAP earnings per diluted ADS to be $0.089. The preliminary second quarter EPS represents a 34.7% increase quarter-over-quarter and a 342.5% increase year-over-year."

    The reaction?

    Sold off about 20% over the next four days, because of Eurozone worries etc.

    An act of stupidity, Himax is set to have one of its best years EVER.

    Their share price last year was similar to what it is now $1.50- 1.60 so what's that 342% increase worth. How much will the share price go up when they notice. $8 does seam a little steep.

    Last Quarter HIMX traded to around 2.25 off of earnings, so 34.7%

    about $3,

    The last time HIMX reported eps 0.09 was 2009 and their share price was in the $4 range.

    My own personal opinion, they should be trading between $3-$4 trough the end of the year.

    Still a nice double from hear, and why I got in long $1.55 -$1.58

    Disclosure: I am long HIMX.

    Stocks: HIMX
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