Watch Out: Barbarians At The Gate For Himax Technologies (HIMX)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Himax Technologies ( HIMX) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Himax Technologies as such a stock due to the following factors:

  • HIMX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $42.2 million.
  • HIMX has traded 5.8 million shares today.
  • HIMX traded in a range 212.5% of the normal price range with a price range of $0.68.
  • HIMX traded above its daily resistance level (quality: 107 days, meaning that the stock is crossing a resistance level set by the last 107 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in HIMX with the Ticky from Trade-Ideas. See the FREE profile for HIMX NOW at Trade-Ideas

More details on HIMX:

Himax Technologies, Inc., a fabless semiconductor company, provides display imaging processing technologies to consumer electronics worldwide. The company operates through Driver IC and Non-Driver Products segments. The stock currently has a dividend yield of 3.4%. HIMX has a PE ratio of 21.4. Currently there are 4 analysts that rate Himax Technologies a buy, 2 analysts rate it a sell, and 2 rate it a hold.

The average volume for Himax Technologies has been 5.4 million shares per day over the past 30 days. Himax has a market cap of $1.3 billion and is part of the technology sector and electronics industry. Shares are down 47.2% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Himax Technologies as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • HIMAX TECHNOLOGIES INC has improved earnings per share by 27.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, HIMAX TECHNOLOGIES INC increased its bottom line by earning $0.35 versus $0.30 in the prior year. This year, the market expects an improvement in earnings ($0.47 versus $0.35).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Semiconductors & Semiconductor Equipment industry average. The net income increased by 24.6% when compared to the same quarter one year prior, going from $19.35 million to $24.11 million.
  • Although HIMX's debt-to-equity ratio of 0.24 is very low, it is currently higher than that of the industry average. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.46, which illustrates the ability to avoid short-term cash problems.

null

If you liked this article you might like

Intel, Praxair, Sogou: 'Mad Money' Lightning Round (12/4/17)

Intel, Praxair, Sogou: 'Mad Money' Lightning Round (12/4/17)

This Isn't a Rally: Cramer's 'Mad Money' Recap (Monday 12/4/17)

This Isn't a Rally: Cramer's 'Mad Money' Recap (Monday 12/4/17)

Rev's Forum: The Market Party Started Early but Should Rock On

Rev's Forum: The Market Party Started Early but Should Rock On

Futures Up After Lukewarm Jobs Report Friday

Futures Up After Lukewarm Jobs Report Friday

Surprise Arrest of Saudi Billionaire Alwaleed Bin Talal Overshadows Big Earnings

Surprise Arrest of Saudi Billionaire Alwaleed Bin Talal Overshadows Big Earnings