Quick Win by the Algorithm

Himax Technologies, Inc. (HIMX)

On July 22nd, 2015, the I Know First algorithm gave a bullish signal of 58.11 for the ticker HIMX with a predictability indicator of 0.38. As the correctly algorithm predicted, HIMX experienced a superb return of 58.16% in a one year time horizon.

Himax Technologies, Inc. (HIMX), is a fabless semiconductor solution provider, based in China. The Company is engaged in display driver integrated circuits (IC) and timing controllers used in televisions, laptops, monitors, mobile phones, tablets, digital cameras, car navigation and other consumer electronics devices.

An analyst from I Know First, had written a bullish article on August 22, 2015, regarding a price increase for HIMX. The article had highlighted how growing demand in the chinese market for smartphones would create a great synergy opportunity for HIMX, which is especially the case as China’s population is moving more towards higher-end consumption as a nation. Additionally, during 2016, another bullish article was written by an analyst of I Know First, on March 22, 2016. He had highlighted the the growth the firm had seen since partnering with google, with virtual and augmented reality, and that revenues would continue to rise throughout 2016; with a rise in both smartphone and tablet sales in China. 

Being in China, HIMX has a unique value proposition, similar to BAIDU, that they are situated in a growing consumer market (China), while understanding the market better than international firms. The end result that we have seen thus far, as seen by Q2 2016, is in fact sales increases that resulted in revenue growth. This is due to the rebound in their smartphone business, from ICs (panels used smartphone and tablet devices) and an increase in sales of their 4k TV. The AMOLED driver IC, specifically had seen a demand increase of 20%, in turn a higher generated sales for Q2. They had reported Q2 EPS of $0.12, beating analysts by $0.02 EPS. Besides for recent events, earlier this year, on June 20th, HIMX had declared 13 cents dividend for FY 2015, showing the company’s optimism regarding the company’s future, therefore, allowing investors to benefit from their income.

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