Himax Technologies, Inc. (ADR) (HIMX): Glass or No Glass, This Stock Is Just Class (But Conditions Apply)

Moreover, if Wintek manages to land the deal for the retina iPad mini, then Himax could see even better business from its Wintek account. The iPad mini is one of the most anticipated tablets this year and Apple Inc. (NASDAQ:AAPL) might launch the device in the third quarter this year, according to NPD DisplaySearch. With the current iPad mini being a hot commodity, a bumped up, retina toting version of the device should surpass its predecessor’s sales.

Himax’s management also had a few words about their LCOS technology, which is to be used in head-mounted displays. The company is preparing for the possible ramp up of this technology and has invested in its facilities accordingly. Also, management commented that it has collaborated “with several top-tier customers on the new head-mounted display application.” Now, Google might be one of these as even the likes of Microsoft Corporation (NASDAQ:MSFT) and Sony are also considering similar devices.

Be concerned, but keep an eye

Now, with Google having already released the Explorer edition of the glass, it remains to be seen how a full-fledged commercial version would look. The Explorer edition is not even as good as a smartphone from two years back, and sells for a steep price and I’m not really impressed with its limited functionality considering the price.

Thus, if Google Glass (or other head-mounted displays) doesn’t click or Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) doesn’t actually find a spot in it, then Himax shares would probably come crashing down as they have been bid up by investors to a pretty expensive trailing P/E of 21 times in anticipation. However, I would still recommend accumulating Himax shares whenever there is weakness in the stock as its overall business looks good and I won’t care too much about the Glass.

Moreover, a forward P/E of just 10 times, a very low PEG ratio, and potential for solid growth ahead make Himax a stock worth keeping an eye on. My only gripe is that shares have run up too high on the basis of something which I would call speculation, but Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) still looks like a worthy investment if we clear out the noise.

Harsh Chauhan has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple and Google.

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