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ChipMOS TECHNOLOGIES (Bermuda) LTD. Message Board

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  • jaretwilson jaretwilson Jun 13, 2012 12:23 AM Flag

    Be careful what you wish for

    I would assume that the reason why the buyback was bungled was that they approved it when the stock price was $5 and so they thought they could get a bunch of shares super cheap and foolishly put a limit of $9 or so on the buyback, and then in no time the price was in double digits. Perhaps they also didn't try to buy very many shares per day. I think we'll see something new from them soon, and if so I hope they realize that they should be putting a limit of at least $20 on the buyback.

    A lower limit could be a problem because otherwise by the time they announce, then wait 30 days (assuming that's necessary again), as well as allow a quiet period before next earnings, there will be little or no time to buy back before Q2 earnings are out, and we all know Q2 should be good between higher revenues, lower depreciation, and foreign exchange. That could drive the stock up, and again make it harder for them to buy.

    As Bob said, management is doing a great job. They just need to realize how well things are going, and then act accordingly.

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    • Don't forget that they didn't start to buy until mid-January even though they could've started in December (they announced the backback in early October). That to me was foolish and unnecessarily conservative. We know the average price paid for the 47K shares they did buy is $7.70 which means they bought the week of January 17 if you look at the price history (they confirmed this was the beginning). It also suggests they capped it around $8. Previous volume had been low but began to grow and really take off in March but they made no adjustment to buy more. Probably thought it unnecessary if the market was taking care of the price, and they could use the money for debt repayment, for example. All that is somewhat forgivable in that everyone was caught off guard by the price rise. They could've bought back maybe 300K shares that first month though. Not much but at least a good indicator of their ability to handle the repurchase well. Maybe they just decided to start fresh in 2012...who knows?

      So the $64 question is what have they been doing lately? Given the much higher trading volume (relative to Jan./Feb.), they are in a position to complete the current BB program quickly and announce a new one. They have been given a second (and much better) chance. I will let out a huge groan if they haven't been aggressively buying back shares and I'm sort of prepared for that because the stock has been drifting down along with volume. The worst case scenario is they are buying back nothing and have no plans to, and they don't explain why. That will only confirm they are out of touch with shareholders.

      At this point I feel like they have navigated us through a terrific storm but instead of sailing into port they're asking us to swim the last ten miles to shore.

      • 2 Replies to davegras
      • Dave;
        Memory is correct. They are not currently buying stock which is pathetic.I can not believe we have gone this long since the C.C. With no announcement.Send S.K. And S.J. An E mail expressing your frustration.Cheers.

      • Dave, they have not been in the market buying stock. As has been posted multiple times, there will be a public filing, and in all probability, a press release, when the buyback plan is amended or replaced.

        As I have written multiple times, write to management, express your extreme dissatisfaction.

        This buyback is a disgrace, but the fact is, the underlying operations and profitability is exceptional, and when (if) a new buyback announcement comes, the stock will likely fly. I think we'll get it soon.

 
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