Seeking Alpha

Himax falls 14% ahead of one-day Google Glass sale

  • Though no major news hit the wires, Himax (HIMX -14%) tumbled to $9 (a level last seen in September) on volume nearly 3x its daily average.
  • Tomorrow, Google will launch a limited one-day sale for the Explorer Edition of Glass (sells for $1,500) for the general public, after only providing them to select developers and early adopters over the last year.
  • Many Himax investors are undoubtedly wondering when Glass will see a full commercial launch, one accompanied by a more consumer-friendly price tag. The FT reported last October a commercial launch isn't expected until mid-to-late 2014.
  • Shares now only go for 10x 2015E EPS, and 1.2x 2015E sales.
Comments (31)
  • mtpennybags
    , contributor
    Comments (36) | Send Message
     
    I don't get it?
    14 Apr 2014, 04:50 PM Reply Like
  • SanDiegoNonSurfer
    , contributor
    Comments (3489) | Send Message
     
    Usually when this happens, it's for a reason. The reason just hasn't been made public yet.
    14 Apr 2014, 04:52 PM Reply Like
  • griffbos
    , contributor
    Comments (262) | Send Message
     
    on march 25 this stock was downgraded by BOA from a buy to underperform, prior to this downgrade the stock fell from march 18th 15 to march 25 11.50, since the downgrade it has fallen further, clearly considering the volume shorts are at play here dragging the price down to cover a position, When BOA downgraded it is my understanding it was because they brought earnings est. in line with other analyst's est. The street continues to rate the stock a buy, even more so since it's over 45% drop from it's 52 week high of 16.15 on 3/13/14, it has dropped the stock is now down over 43% YTD going from a 2014 PE of roughly 26.5 to a 2014 PE of under 15 , making this growth stock undervalued considering its CAGR is 40% over the next 5 years....
    14 Apr 2014, 07:51 PM Reply Like
  • thestockbroker
    , contributor
    Comments (544) | Send Message
     
    That is such a perceptive reply, I'm not being sarcastic, too often you hear it fell for no apparent reason, well maybe not apparent to you however very apparent to someone. That's where the adage "buy (or sell) on rumor sell (or buy) on the news. That's not to say the selling isn't overdone either. Very wise SDNS
    14 Apr 2014, 09:23 PM Reply Like
  • SanDiegoNonSurfer
    , contributor
    Comments (3489) | Send Message
     
    Thanks, Stockbroker. It looks like an interesting situation, worth watching at least until there's some clarity.
    14 Apr 2014, 11:16 PM Reply Like
  • Aaron.Rhodes
    , contributor
    Comments (266) | Send Message
     
    Awesome! I am buying!
    14 Apr 2014, 04:50 PM Reply Like
  • andy eldridge
    , contributor
    Comment (1) | Send Message
     
    buy buy buy!!!
    14 Apr 2014, 05:04 PM Reply Like
  • Luuk
    , contributor
    Comments (3) | Send Message
     
    buyyyyyyyyyyyyyyyyyyyyyy
    14 Apr 2014, 06:15 PM Reply Like
  • jimguy05
    , contributor
    Comments (4) | Send Message
     
    It makes no sense why the stock should drop like it did today on news. Also I didn't understand why there was no price movement when Google announced partnership with Italian eyeglass kingpin Luxottica. This should have been fantastic news for Google and Himx, because now the will now have access to top designers from some of its flagship brands to help address what been long believed is one of the least discussed, but most critical, impediments to Google Glass ever gaining mass adoption – their look.
    Tomorrow should be a telling day as glass goes on sale. Lets see how many are sold at 1500.
    14 Apr 2014, 06:15 PM Reply Like
  • Opportunist
    , contributor
    Comments (152) | Send Message
     
    If a commercial launch isn't expected until mid-to-late 2014, why the disappointment that this is not yet a commercial launch in only April? It's just the market -- everyone is nervous about stocks that have gone up so much, and some are I suppose anticipating that tomorrow will not go well and getting ahead of it.

     

    (However, I do wish Google would have waited until after Tax Day (Depression Day) to have the event. People busy and not very happy about paying taxes. Kind of dumb on their part.)

     

    Himax is more than Google Glass, and Google Glass is going to do well anyway. Everyone is worried that people won't wear them on the streets. But the applications in industry are numerous.

     

    Like Micron, Himax is now both and growth stock AND a value stock. And in Himax's case, it's also a dividend stock. And it's got what, 40% growth projected? No brainer.
    14 Apr 2014, 06:20 PM Reply Like
  • thestockbroker
    , contributor
    Comments (544) | Send Message
     
    Opportunist, in all sincerity do you think anyone who can/would pay $1500 for the glasses worries if it's b4 or after 4/15 (tax day)? Like the adage if you can afford to drive a Hummer H2 do you really about the cost of gas?
    15 Apr 2014, 06:50 AM Reply Like
  • kylempls
    , contributor
    Comments (29) | Send Message
     
    people driving an H2 have to worry about gas. Those are pretty average suburban vehicles... people driving Ferrari's however...
    15 Apr 2014, 09:30 AM Reply Like
  • Stock Market Mike
    , contributor
    Comments (2487) | Send Message
     
    People driving Ferraris still have to think about Gas. People driving a Tesla don't. :P

     

    -Mike
    16 Apr 2014, 11:13 AM Reply Like
  • Yesterdays_news
    , contributor
    Comments (1540) | Send Message
     
    "Those are pretty average suburban vehicles"

     

    H2s get super shitty mileage… 9-14 mpg if your lucky.

     

    I think ALL Ferraris get better highway mileage since they are way more aerodynamic and not shaped like a brick… http://bit.ly/Qfulu0

     

    Your Google Glasses must have rose colored lenses? Get some real reading glasses!
    17 Apr 2014, 01:40 AM Reply Like
  • Yesterdays_news
    , contributor
    Comments (1540) | Send Message
     
    "People driving Ferraris still have to think about Gas. People driving a Tesla don't."

     

    However, people driving a Tesla's have poor car visibility.
    They are looking down their nose to much at others to see the road traffic!

     

    Also, I here Musk is installing another fueling port in the driver seat. It plugs into your ass and runs the car on a combination of the owner's incredible ego and endless supplies of hot gas!
    17 Apr 2014, 01:49 AM Reply Like
  • thestockbroker
    , contributor
    Comments (544) | Send Message
     
    I actually get just under 16 mpg and 75% of my driving is city
    17 Apr 2014, 02:44 AM Reply Like
  • kylempls
    , contributor
    Comments (29) | Send Message
     
    You misunderstand my point... People driving H2's have to worry about gas because they weren't owned by the uber-wealthy, but by fairly average, if slightly affluent families.
    People that drive a ferrari could care less about the price of gas... if you can shell out $250K or more, what's a paltry $5 gallon for 100 octane? Case in point, the Enzo. $1M car, $30K brake job, or $700 oil change...

     

    Any way.. back to himax.
    17 Apr 2014, 09:31 AM Reply Like
  • thestockbroker
    , contributor
    Comments (544) | Send Message
     
    my mistake
    17 Apr 2014, 01:13 PM Reply Like
  • slcUTAH
    , contributor
    Comments (542) | Send Message
     
    With the recent HIMX stock drop and especially with today's plunge it is definitely an opportunity to add more shares or to start a position with HIMX but I'm not sure if a floor has been established with today's big drop. The stock can still come down more. It's impossible to time the market. If we could time the market we would ALL be multi-millionaires. I will monitor the stock activity and add to my position. My intention with HIMX is to be LONG with it. HIMX has a bright future. Temporary pain will translate to long term gains. Take advantage of opportunities.

     

    -Cheers.
    14 Apr 2014, 07:13 PM Reply Like
  • griffbos
    , contributor
    Comments (262) | Send Message
     
    on March 25th the stock traded 3x 30 day volume the day BOA downgraded it, today it traded again 3 times 30 day in an up market, I think most shorts covered today and a floor should be forming as it is now in oversold territory . 2014 EPS 0.61 2015 EPS 0.88 thus it closed at 14.75 of 2014 EPS the S&P ave. is 15 and this is a growth stock which should be trading at a premium price target for the stock is 15.00 which would mean trading at 24.5 of 2014 earnings...or 13.2 of 2015 earnings
    14 Apr 2014, 08:04 PM Reply Like
  • lampshade2
    , contributor
    Comments (121) | Send Message
     
    The only reason that HIMX began the long run upward was because Google purchased an interest in the company. I would imagine they did that to have some control over their manufacturing needs. The loyal shareholders have been waiting for this release of GGlass. Waiting far too long. I am happy it sold off to send a message to this company and google. The problem is that google has deep pockets and I wouldn't be surprised if they even dropped the project in the future. Dear Google, you have to move faster. It's 2014 and you are moving like it's 1975. Have you ever listened to one of the earnings meetings? It sounds like the company reps would rather fall asleep than sell their company and it's future.
    14 Apr 2014, 07:56 PM Reply Like
  • Stock Market Mike
    , contributor
    Comments (2487) | Send Message
     
    They need a *strong* app ecosystem to sell $1500 glasses like hotcakes. If they do it poorly, some other company like Apple would come along and do it better. They have to take and hold the #1 spot. This can't be like Android, where it benefits other companies (Samsung, Microsoft) more than Google.

     

    I don't think Google will drop the project. That's more of a Microsoft line of thinking.

     

    -Mike
    14 Apr 2014, 10:34 PM Reply Like
  • Yesterdays_news
    , contributor
    Comments (1540) | Send Message
     
    Google has waited WAY to long to release these glasses. You think they would have learned a lesson from Apple's slow iPhone releases!

     

    The public has already made their minds up about these glasses before they have ever hit the streets. Google's marketing and PR departments totally suck and need to be fired.
    http://huff.to/Qfx8TT
    17 Apr 2014, 02:06 AM Reply Like
  • Stock Market Mike
    , contributor
    Comments (2487) | Send Message
     
    This is precisely why they must wait. They need an overwhelming number of reasons that you should want Glass. One use is not enough. Recording skydiving is not enough. Every person must see at least one valid use that applies to them - that will lead to a positive sentiment shift over a couple of years.

     

    Just remember back to how negative everyone was on Smartphones. For years they were looked down upon, until everyone had to have one because they ended up being so useful.

     

    -Mike
    17 Apr 2014, 11:51 AM Reply Like
  • ferrante8948
    , contributor
    Comments (2) | Send Message
     
    I want to know more about the value of lcos technology. I hear Samsung has Thiers out . this is the true value of himx.
    14 Apr 2014, 08:30 PM Reply Like
  • Chris Lau
    , contributor
    Comments (2354) | Send Message
     
    I spend more than I want to on Google+, and for a huge community that should be supporting Google Glass, it is not (G+ is full of Android fans). While the original 'explorers' are enthusiastic, they spend all their time and energy defending the device. I'm sceptical. Google is now moving on to robotics, Nest, and smart watches (though Moto was just sold). Will the average consumer buy both a smart watch and Glass?
    14 Apr 2014, 10:20 PM Reply Like
  • StepUp
    , contributor
    Comments (500) | Send Message
     
    Sell the news - or in this case the actual event.
    14 Apr 2014, 11:53 PM Reply Like
  • Balanced Position
    , contributor
    Comments (4) | Send Message
     
    sell the news? then you need to short too many stocks
    15 Apr 2014, 08:41 AM Reply Like
  • kylempls
    , contributor
    Comments (29) | Send Message
     
    Himax just pre-released their Q1 numbers not even 30 minutes ago. Damage control?

     

    1Q2014 Revenue:
    $194.6 million, an increase of 10.8% year over year versus Company guidance of "Flat to slight down sequentially and up ~11% from Q1 2013"

     

    1Q2014 Gross Margin:
    24.7% versus Company guidance of "Down slightly from Q4 2013"
    15 Apr 2014, 09:53 AM Reply Like
  • Yesterdays_news
    , contributor
    Comments (1540) | Send Message
     
    The Explorer version is not a production edition but pre-production beta test model.

     

    People need to wake up and do some research before shelling 1500.00 for test glasses.
    17 Apr 2014, 02:01 AM Reply Like
  • lampshade2
    , contributor
    Comments (121) | Send Message
     
    I took a serious loss on this one last year so needless to say when I think of HIMX I think of the value BEFORE Google took an interest in this company. I hope I am wrong.
    I wonder if Google is reviewing all of their future plans after the latest earnings information. I think I would be. When I think of the Gglass development team I think they are the classic, getting ready to get ready to get ready. In other words they never get started. I think they should start full online selling of the device and see where it goes or dig a hole and cover it up.
    17 Apr 2014, 10:44 AM Reply Like
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