Himax Technologies (HIMX) Stock: Why It’s Up & Will It Last?

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Himax Technologies, Inc. (ADR) (NASDAQ: HIMX)

Himax Technologies is having an incredible day in the market today, and for good reason. The company released data with regard to what it’s expecting to accomplish in the third quarter. Of course, this excited investors. Today, we’ll talk about the business update that was released, how the stock reacted to the news, and what we can expect to see from HIMX moving forward.

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HIMX Releases Q3 Guidance Update

As mentioned above, Himax Technologies is having an incredible day in the market today, and for good reason. The company released a business update, reiterating guidance for the third quarter as well as its business outlook for the remainder of the 2016 year.

In the release, the company offered information that shows its augmented reality and virtual reality businesses are doing well. HIMX said that it is continuing to work with more than 30 customers with regard to various augmented reality devices using LCOS microdisplay and/or WLO. The company also said that this list of customers is growing. In the announcement, the company said that more of its customers are expecting to bring their products to the market within the next year.

What We’re Seeing From The Stock As A result

As investors, one of the first things that we learn is that the news moves the market. Any time positive news is released with regard to a publicly-traded company, we can expect to see gains in the stock associated with that company. Adversely, when negative news is released, we can expect to see declines. Fortunately, the news released with regard to HIMX today was overwhelmingly positive. The company is on track to meet targets and continues to grow its customer base. As a result, we’re seeing strong gains in the market. Currently (2:05), the stock is trading at $8.58 per share after a gain of $0.28 per share (3.37%) thus far today.

What I’m Expecting To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Himax Technologies. At the end of the day, the company is well-positioned to take a large share in an emerging market. Think about how big of a market Virtual Reality and Augmented Reality is likely to become over time. Now, take a look at the competition. While there are some big players in the industry, the vast majority of the competition is in its infancy.

Now, when we look at HIMX, we see a company that can be considered to be one of the pioneers of the industry. In fact, the company has invested time and money into augmented reality and virtual reality related technologies for more than 15 years! They know the product, they know the industry, and now, we’re getting news that their list of customers continues to grow.

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The bottom line here is that HIMX is on the cutting edge of an emerging industry. With its experience in the industry and the potential the industry has to grow over time, I’m expecting to see big gains in the value of the stock ahead!

[Image Courtesy of Wikipedia]

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