Last week, Himax Tech (HIMX) had a phenomenal rally into earnings and even extended the rally after what was generally disappointing guidance. The stock started the week at $5.06 and ended at $6.94 for a nearly 40% gain in one week. The company offers the promise of some advanced technologies in 3D sensing solutions that caused Nomura to upgrade the stock to a price target of $9. The AR/VR market remains delayed as the prime customer continues to push out production for a next generation product. The encouraging aspect of the AR technology is that Himax is working with 30 customers on solutions that could hit the market in the next year and diversify sales away from disappointing high-profile customers. The stock though is running away from reality. Looking at a similar stock like Advanced Micro Devices (AMD) that had the massive rally last year, Himax doesn't offer the same cheap valuation equation. AMD now trades at about 2.5x sales estimates while Himax is already at 1.5x sales. AMD didn't pass that measure until near the end of 2016 as revenues started ramping versus the Himax story of declining sales in 2017. The key takeaway is that Himax was a buy at $5 and an interesting stock to pick up on dips this year. The numbers though tell a story that is bound to disappoint investors at some point during the year. Why not wait for that opportunity?Disclosure: No position