Stock Bet of The Week: HIMX

On Tuesday (Sep 12th) Apple will reveal its new iPhone 8. Rumors have been flying all year about what new technologies will be included and which suppliers will be chief beneficiaries. As the release draws near it is becoming increasingly likely that Himax Technologies (HIMX) will be on that sacred list. I am not a technology nerd, and am probably closer to the other end of the spectrum: clueless. However, I do know how to read.

Below is a chronology from recent articles speculating on one particular new technology that will be included in Apple's new phone, which includes HIMX. If true, isn't this already factored into the price of HIMX's shares? Buy the rumor, sell the news?

Or with Apple's deep pockets ($250 Billion in cash) is it more like "buy the company (market cap $1.2 Billion) and own the patents?" 

Follow the bouncing ball: 

August 9, 2017:

"Rumors of 3D-sensing features being included in Apple's rumored OLED iPhone are continuing to grow, with the Taiwanese Himax Technologies reportedly joining the supply chain for the device, providing glass for a module constructed by Lumentum."

August 14, 2017:

"One company that's expected to benefit nicely from the inclusion of 3D sensing in the new iPhone is Lumentum (NASDAQ:LITE). The company, which holds itself out as a "market-leading manufacturer of innovative optical and photonic products enabling optical networking and commercial laser customers worldwide," spent a good deal of time on its most recent earnings call talking up the ramp-up of its 3D sensing components."

August 22, 2017: 

"Continuing a running theme over the last couple of weeks, a photo emerged online late on Monday of an alleged leaked 3D sensing camera module destined for the upcoming "iPhone 8" (via Slashleaks). Apple is said to have radically revamped its front-facing camera for its OLED iPhone, adding 3D sensing capabilities for facial recognition."

 

Sometimes a stock purchase is an investment, sometimes a swing trade, and sometimes it's just a bet. I'm buying HIMX on Monday, I like the odds. 

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