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Himax dives on Chardan downgrade; firm worried about Glass adoption

  • 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.
Comments (7)
  • BAHAMAS1
    , contributor
    Comments (2438) | Send Message
     
    Imo, a premature and myopic viewpoint which will prove wrong over the short and long term.
    28 Jan 2014, 11:01 AM Reply Like
  • slash32is4
    , contributor
    Comments (149) | Send Message
     
    good reason for concern but like Optimus Prime said "What if we leave and your wrong?"
    28 Jan 2014, 11:06 AM Reply Like
  • millsy1
    , contributor
    Comments (101) | Send Message
     
    I never liked the way it looked but the new frames and sunglasses look just like real eye glasses and do not stick out like the oriiginal gg. I think people will feel more comfortable in public with the new frames. The original frames will also be available for the tekkies. If someone told u 20 years ago that everyone would b carrying around pocket sized computers that also made phone calls, most would of thought that was crazy. The downgrade also talks about the lack of apps. I remember when their were no apps for the smartphones and now their r millions of them. The risk is still there but the new frames have made me much more comfortable with my investment in himx.
    28 Jan 2014, 05:34 PM Reply Like
  • haschultz
    , contributor
    Comments (711) | Send Message
     
    A bit shortsighted (glass pun intended).

     

    First Google Glass is not all that LCoS will be used for (Gaming Goggles, Heads Up Displays in cars, camera arrays, etc.).

     

    Second is that Google Glass is looked at as single item when the customers will entail various sectors. Consumers are one although they should be the last adaptors (although geeks sells well in Asia and elsewhere). But, there are many very beneficial uses for these including those needing references to be more productive..........like builders, machinists, carpenters, etc.) and then people like police (GPS, facial recognition, test recognition for license and license plate checks, etc., etc.).

     

    These will be used in sports training and entertainment (newscasters without need for camera person).

     

    But, aside from LCoS and Google Glass, HIMX Mgmt stated at 3q 2013 conference call that they were better positioned going into 2014 in term of design wins, customers and product offerings than they were for 2013.

     

    Finally, this is Chardan who is allowed their interpretation. How about those who attended the Scottsdale investors presentation in Dec and came away llike Northland (HIMX pick of year for 2014) and Topeka ($16 price target). And, how about Bank of America (Merrill Lynch) who came away from the Jan 2014 Vegas Investor's conference with a $17.50 price target. These analysts had 'one on one' conversations with Mgmt............but I did not read anything in the Chardan report about discussions with Mgmt.

     

    With the earnings and conference call on 13-Feb, we will soon know who knows best.
    28 Jan 2014, 11:08 PM Reply Like
  • Richard Waldren
    , contributor
    Comments (235) | Send Message
     
    Thanks haschultz
    29 Jan 2014, 12:55 AM Reply Like
  • berniespear
    , contributor
    Comments (241) | Send Message
     
    Ol' Jay just wanted to buy more shares 8% cheaper.
    29 Jan 2014, 02:35 AM Reply Like
  • Street Instincts
    , contributor
    Comments (98) | Send Message
     
    I need glasses anyway. Why not have glasses plus a computer that beams info into my eyeball? Seems like a no brainer.
    12 Feb 2014, 10:22 AM Reply Like
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