Boston, MA 01/29/2014 (wallstreetpr) – Himax Technologies Inc. (NASD:HIMX) shares have soared over 400% in the last 12 months riding high on Google Inc. (NASDAQ:GOOG)’s announcement that Himax has manufactured the advance displays that power the screen for Google Glass. Google’s announcement have made investors believe that Himax has a tremendous growth potential in emerging wearable tech space which shall be the next best thing to happen in the coming few years.
Himax’s selling point
Himax Technologies Inc. (NASD:HIMX) is a Taiwan based company which operates as an IC design house with LCD manufacturing capability and Himax is a semiconductor provider dedicated to engineering display imaging, digital camera and processing technology for various OEM’s. Himax has diversified into many businesses and provides display, analogic and media solutions to various entities. Himax’s manufactures CMOS image sensors, LCOS microdisplay solutions, touch panel controllers and timing controllers which is the backbone of this company and its key growth and development area.
Down gradation by Chardan
Chardan Capital has downgraded Himax Technologies Inc. (NASD:HIMX) from buy to neutral as it believes that much of Himax’s growth potential has been utilized and Himax does not possess any future growth or development potential. Chardan has clearly stated that though investors are waiting for Google Glass and many other applications of Himax to materialize but in the absence of compelling applications, they have reason to believe that many of these products are unlikely to witness mass adoption and may even prove to be a complete failure which would only further dent Himax’s image rather than helping in Himax’s growth and development. Chardan also expects severe competition for Himax in its core business area that of display drivers which may very well lead to a fall in Himax’s revenues and earnings in the coming year.
Conclusion
It is widely believed that 2014 may very well be Himax Technologies Inc. (NASD:HIMX)’s year because Google has purchased 6.3% stake in the company and future collaborations between Google and Himax will surely help in unprecedented growth and development for Himax which will also lead to a surge in their stock prices. Himax has the starting advantage of having the best technology in wearable technology industry and rumors are rife that it may enter into contracts with technical giants like Microsoft Corporation (NASDAQ:MSFT) by the end of 2014. Himax’s earnings reports have always beaten analysts expected earnings thereby making it a surprise package for all investors holding Himax’s shares and to add feather to Himax’s cap it can be mentioned here that Himax’s market cap has exceeded $2 billion thereby making it one of the largest technical giant to watch out for in 2014!
