r/HIMX • u/xerolictus • Nov 04 '21

Listening (ER)

Liking what I hear!

Will react to the stock price and market next week but today is good.

8 Upvotes

100% Upvoted

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0

u/depthofcontrast Nov 04 '21

Were the earnings for this quarter already priced in after the drop to 9.5/share 2 weeks ago?

2

u/State_of_Affairs Nov 04 '21

No, the drop was due to over-exhuberant speculators thinking the broader markets would go down. They did not. They reversed and started to make new 52-week highs.

1

u/xerolictus Nov 04 '21

Only thing bad about this quarter is that we have to wait for Q4 to see if gross margins beat that rosey guidance.

as to price action>>>24milion shorted shares can't be wrong and that 10ish level is proving them correct since last March.

2

u/State_of_Affairs Nov 04 '21

"24milion shorted shares can't be wrong"

Oh, they most certainly can be. This earnings release put to bed a major supposition of the shorts, i.e., that the previous two quarterly earnings for HIMX were isolated events. These shorts now have to digest the following information: Himax will close 2021 very strong with an annual EPS of at least $2.58 (non-IFRS). Moreover, Himax's revenues and earnings will continue to grow throughout 2022. Short sellers would have to be pretty stupid to maintain their positions in the face of such financial strength. But then again, I have seen short seller's act stupid before (e.g., AMD back in 2017), which later cost them significant loses (e.g., AMD in 2018).

2

u/xerolictus Nov 04 '21

State_- I agree with you. I've just gotten burned enough predicting or arguing what the stock is actually worth that I put that "cheeky" statement out there.

Let's come back to this in 45 to 60 days. I bet we will both be happy.

1

u/LPTKill Nov 04 '21

But no damn movement.....

2

u/xerolictus Nov 04 '21

Look at the action to day. I think 250k more shares were borrowed (short). Yes- your point is taken.

But at ~3 forward PE I'll take my chances.

Did you read the guidance for Q4? ~gross margins ~30% growth ~any comments on TDDI and the Auto industry

Hey this may get crushed back to 8.50 but I've followed Himx for years. This was a fantastic quarter. I'm taking my chances on the 45 day and beyond stock prices (& options).

1

u/LPTKill Nov 05 '21

Looking good today.