Himax Tech (HIMX) surged 12% two days prior to officially reporting Q4 results before the market open tomorrow. The company had previously reported disappointing preliminary numbers so the key aren't the numbers, but rather the commentary on how the market has changed over the last three weeks. The stock probably offered interesting risk/reward trading down at $5 with the analyst community universally dumping the stock in the last few months. Most analysts are now effectively negative on the stock with Hold ratings. For those not in the stock, chasing at $6 isn't that appealing. Himax needs to prove that the opportunities in the AR/VR realm aren't pushed out into 2018/2019 while convincing people the opportunity hasn't actually shifted to other players like Synaptics (SYNA). The rally appears a headfake as the company isn't likely to appease the market with more words that progress will take place in the non-driver areas without any actual facts. Himax could run after the earnings report, but my preference is wait for a better reward entry back around $5 as the AR/VR sector appears constantly pushed out. Disclosure: No position