Himax Technologies’ (NASDAQ: HIMX) 52-week low of $3.11 set on Dec. 10 is unusual because no bad news accompanied the stock’s the sharp drop. Even though short-volume dropped from September to October, the bearish attack succeeded in pulling the stock even lower. Fortunately, some buyers started a position in Himax. As CES 2019 approaches and markets get a better idea on Apple iPhone sales in the quarter, the positive news may help.
VR and Microsoft
Markets forgot that Himax is still involved with Microsoft’s (NASDAQ:MSFT) Hololens. Since this VR headset is not yet on the market, bears need not price in its success on the stock. The Hololens army contract is big and is probably worth hundreds of millions. Any press release from Himax next year will send HIMX stock higher.
New Trading Range
For years, traders could buy Himax stock at around $5.50 – $7.00 and sell the stock at $9.00 - $10.00. The stock’s rapid drop in the last few weeks creates a potentially new trading range at $3.00 - $3.50 and $7.00.
Catalysts in 2019
The WLO segment continues to perform well enough to support Himax’s revenue levels. AR – augmented reality – and the 3D sensing development with Qualcomm (NASDAQ:QCOM) could gain some traction. Any initial customer sign-up for the latter will restore investor confidence in the company.
Disclosure: The author owns shares of Himax Technologies
