The high volatility in shares of Himax Technologies (NASDAQ: HIMX) should not surprise its shareholders. The stock historically moves with great magnitude and in a short amount of time. Last week, the stock broke down, giving up the $10 level and dipping to as low as $8 a share.
The stock is easy for traders to move: its market cap is under $1.5 billion. But Himax’s next event will settle the score between bulls and bears.
Himax will report earnings sometime in mid-February (estimated date: Feb 15). Though revenue and profits should fall as the company unwound its legacy businesses, management’s outlook will be a deciding factor in the near-term share price. The manufacturing plant for WLO and 3D sensing technology should be complete or near-complete.
Production for those components used in the next-generation smartphones should commence, if not now then later this year. But until Himax gives any hint as to the order volume, the revenue potential is just a guess.
Bears, which number 17.3% in short float, had a firm control in hurting the stock price last week. It is up to management to give its investors a reasonable outlook and an update on its manufacturing schedule for 2018/19. That might, once and for all, give the stock more stability and less volatility this year.
Disclosure: Author holds HIMX shares.
