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.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!