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Can HiMax Technologies End 2016 on a High Note?

Himax Tech Price
Himax Tech Price

Aside from meeting quarterly projections, any more positive news from HiMax's management about augmented reality (AR) deals could likely push the stock into more positive territory as well.

Image source: YCharts .

HiMax CEO Jordan Wu has said that his company is perfectly positioned to grow in the space because it's been working with AR-related technologies for 15 years and already has 30 new and existing augmented reality customers.

The company is expected to benefit from those customers toward the end of this year, particularly in sales of its LCOS (liquid crystal on silicon) and WLO (wafer level optics) technologies. And Wu has said these technologies will be part of a long-term growth story for the company.

About 14% of the company's total revenue for the year could come from AR, so any positive news in this space on the third-quarter earnings would likely fuel HiMax investors' optimism.

Not too much longer now

I've written about the volatility of HiMax Technologies' stock before and -- at the risk of repeating myself -- investors should really keep this in mind. It seems that any subtle news either for or against HiMax sends some of its short-sighted investors into a tizzy, so long-term investors betting on HiMax should know that they're likely in for more ups and down.

But if the company can deliver on its third-quarter earnings, and show that it can continue growing its AR-related sales, then I think its stock price should start moving back into positive territory. The bigger question is whether or not HiMax can truly cash in on AR's growth in the coming years -- and so far, that's still a big unknown.

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Chris Neiger has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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