Himax dives on Chardan downgrade; firm worried about Glass adoption

|About: Himax Technologies, Inc. (HIMX)|By:, SA News Editor

Chardan Capital's Jay Srivasta, a long-time Himax (HIMX -8%) bull (previous), has cut shares to Neutral. He's worried Google Glass and similar products won't see mass adoption "in the absence of compelling applications," and that other factors (price, ease of user, public backlash) are also up in the air.

As a result, he thinks Himax should be owned for its core business (LCD driver ICs) rather than its LCOS microdisplay ops. Within that business, he expects competition from Taiwanese rivals to pick up this year in the market for high-res small/medium-sized driver ICs, leading to price pressure.

Google has made considerable headway in creating a developer ecosystem for Glass, but privacy and public image concerns are still widespread. Also, Glass' retail price following a full commercial launch remains a mystery.  Google just launched prescription lens upgrades for glass.

Himax rallied yesterday following a report stating Samsung is working on a Glass rival.