Trade Himax, Vuzix, and Microvision

The doubling in the stock price of Vuzix (NASDAQ:VUZI) last week could give traders an easy short-term profit. The short interest is ~16%. Continued buying momentum could squeeze the shorts, sending the stock even higher.

Bears could double down on their bet against the smart glasses maker. The announcement of its Envirotainer, the augmented reality M400 Smart Glasses product, may find no customers. AR did not take off in the last decade and may not interest anyone this time.

MicroVision (NASDAQ:MVIS) is another micro-cap stock whose stock price doubled in the last month. The company posted Q3 revenue of just $0.6 million, down by almost 50% Y/Y. Short interest is 12.5%. So, if bears bet on the speculative momentum losing steam, MVIS stock will fall.

Himax Technologies (NASDAQ:HIMX) saw its stock price double after bottoming at $3.50 on Nov. 1. The company regained investor confidence when it posted another strong quarterly report. In Q3, it posted revenue growing 46.1% Y/Y to $239.93 million. CEO Jordan Wu said, "Gross margin expansion has always been at the top of our agenda and we will surely work hard toward continuous profitability improvement."
Better Q4 gross margins put an end to the under-performance in HIMX stock. Investors should take another look at this company.