Why Himax Technologies Inc. Shares Plunged Today
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 fell more than 10% Monday, continuing last week's slide on unconfirmed reports Google Glass might not use Himax's display chips.
So what: However unlikely this situation is to pan out -- especially considering Google opened a significant stake in Himax last summer -- rumors of losing Big-G's support are certainly proving more pervasive than bullish Himax investors would like. As I suggested early last week, however, "Until we hear otherwise, Himax shares will likely remain under pressure."
It also doesn't help that Himax provided disappointing second-quarter revenue guidance a few weeks ago, but keep in mind Himax CEO Jordan Wu insisted the headwinds were only temporary.
Now what: Google isn't Himax's only customer, and it looks like much of the pessimism is priced in with shares trading at just 10 times next year's expected earnings. For patient investors who don't mind maintaining a long-term outlook, I think Himax could be a bargain today.
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The article Why Himax Technologies Inc. Shares Plunged Today originally appeared on Fool.com.Steve Symington has no position in any stocks mentioned. The Motley Fool recommends Google (A shares) and Google (C shares). The Motley Fool owns shares of Google (A shares) and Google (C shares). Try any of our Foolish newsletter services free for 30 days. We Fools may not 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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