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May 8, 2022
[3 min Read]
Retard Warning: a lot of big words and numbers are to follow. I ate all my crayons already and my wife's boyfriend only uses paint because he's sophisticated, so try to pay attention.
What is it?
Himax Technologies (HIMX) is a semiconductor company, that provides display imaging processing technologies in China, Taiwan, the Philippines, Korea, Japan, Europe, and the United States. The company operates through two segments, Driver IC and Non-Driver Products. It offers display driver integrated circuits (ICs) and timing controllers that are used in televisions, laptops, monitors, mobile phones, tablets, automotive, digital cameras, car navigation, virtual reality devices, and other consumer electronic devices.
What is happening?
HIMX is scheduled to release their Q2 earnings pre-market on Thursday, May 12. Expected earnings are about $0.70 and HIMX set their range fro .67-.73. Given that they have a proven track record of beating expectations, I highly suspect the earnings results to come in around $0.75. During Q1, HIMX had a return on equity of 64.29% and a net margin of 28.24%. They also had revenue of $451.90 million during the quarter. These are all good signs. The company has a debt-to-equity ratio of 0.05, a fifty-two week low of $8.53 and a fifty-two week high of $17.30. The stock has a 50 day moving average price of $10.36 and a two-hundred day moving average price of $10.96. Their market capitalization sits at around $1.66 billion, and a P/E ratio of 3.80. More good signs. The company's revenue shot up 74% in 2021 to $1.55 billion, while gross margin increased to a record 48.5% from 24.9% in 2020.
Here's the kicker, HIMX has a 5Y beta value of 2.01! For all you retards that have read this far and don't know what that means: Beta is a measure of risk commonly used to compare volatility The S&P 500 Index is the base for calculating beta with a value of 1.0. Securities with betas below 1 have historically been less volatile than the market. While securities with betas above 1, have historically been more volatile than the market. The beta is calculated using data over a 5-year period. Just for comparison purposes Apple's beta is 1.19 and Tesla is 2.11.
What do the big boys think? A number of hedge funds have recently built up their holdings of HIMX. Morgan Stanley grew its stake in Himax Technologies by 243.6% in the second quarter. Marshall Wace LLP bought a new stake in Himax Technologies in the fourth quarter worth $4,830,000. JPMorgan Chase & Co. boosted its holdings in Himax Technologies by 293.2% in the fourth quarter and acquired an additional 217,129 shares in the last quarter. State Street Corp boosted its holdings in Himax Technologies by 17.1% in the fourth quarter. Finally, BlackRock Inc. boosted its holdings in Himax Technologies by 59.3% in the fourth quarter. 26.96% of the stock is currently owned by institutional investors.
HIMX has a price target set at $11 by Nomura. This tells me that the current price, just like the rest of the market, is on sale. Right now, HIMX is trading at just 3.5 times trailing earnings and 0.99 times sales. So right now looks like a no-brainer, even for a bunch of retards. Their rapid growth should be sustainable for a long time to come, as it is serving several fast-growing markets - TVs, smartphones, notebooks, tablets, automotive touchscreens, and virtual reality devices.
What to do? I don't care. I'm not your mother. Buy shares because it's poised for a bull run. Try to time the options trades right with earnings this week, because it's super volatile and it could sky rocket. Eat more crayons and dream of what life would be like if Papa Elon didn't just crush your bank account because you lost all your money on TSLA calls.
Positions - don't have any. I do this shit for fun. I'm old and boring and put all my $ in lame-ass mutual funds because I want to retire one day. But here, have a rocket 🚀