Himax Technologies (NASDAQ: HIMX) is on fire on the stock market. Shares rose 10% higher last week and is up over 35% as of close on November 24. Without any positive catalysts that would explain the rally, investors must ask if there is more upside in HIMX stock or if it is time to take profits.
Himax does not have any major news that would explain the rally. On Nov 13, the company said it would Attend Credit Suisse 21st Annual Technology, Media & Telecom Conference on November 27th - 30, 2017.
Apple (NASDAQ: AAPL) said on Nov. 22 that it would acquire vrana, a headset maker that uses Augmented Reality technology, for $30 million. The deal is small in value, so that would not explain investor interest in HIMX stock.
Himax’s earnings report earlier this month would hardly give the stock the lift. The company reported earnings of just $0.021, mostly beating its guidance of 1.3 cents to 2.5 cents. Revenue from large-panel display fell 23.7% year-over-year.
More optimistically, Himax forecasts strong Q4 results as Chinese customers defer orders in that period. Seasonal strength will also add meaningfully to next quarter’s revenue.
Himax’s strong rally will surprise most bulls but AR is here and 3D sensing in smartphones will catch steam, first on iPhone X and then on many new smartphones in 2018.
