Why Himax Technologies Shares Skyrocketed
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 have skyrocketed today by as much as 39% after an article on Seeking Alpha speculated that the company could greatly benefit from Google Glass and could triple.
So what: Author Mark Gomes claims that him and his research team have uncovered evidence that suggests Himax will be the primary provider of Google Glasss micro display. Gomes also cites commentary from Himax's last conference call as contributing to this view, as CEO Jordan Wu noted a "new and exciting head-mounted display application."
Now what: Himax also recently referred to large domestic software companies as possible customers, and the article says that Himax shipped 20,000 chips last quarter, which matches up with Google's announcement that Glass is expected to hit the consumer market later this year at a retail price point of under $1,500. Gomes also points to recent footage of the device in action, saying the panel looks identical to those offered by Himax. The author believes Street estimates will rise to factor in the possible Google Glass win, and calls for shares to triple.
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The article Why Himax Technologies Shares Skyrocketed originally appeared on Fool.com.Fool contributor Evan Niu, CFA. has no position in any stocks mentioned. The Motley Fool recommends Google. The Motley Fool owns shares of Google. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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