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ChipMOS TECHNOLOGIES (Bermuda) LTD. Message Board

  • jayand777 jayand777 Dec 14, 2012 11:58 PM Flag

    Jaret...

    What is the forex conversion looking like as we near the end of the quarter. It would be nice to see a gain once in a while...

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    • Thanks for all the interesting and insightful discussion!

      Dave, if you don't mind, please share with us tomorrow of your conversation wish SK/SJ. Please pound it in their heads that world class companies like Intel, Amazon, and Cisco are borrowing massive amounts of money at cheap to buy back their shares, and IMOS should be doing the exact same thing. Like many have said on this board, buying back even a measly 5,000 shares per day would be highly demonstrative of their understanding and sympathy of shareholder sentiment!

      Sentiment: Buy

    • Jay, if the NT $29.06 stay flat till 12/31 then we will have around a $900 thousand loss. Craig Halum has $1.7 million loss in their projections

      Sentiment: Strong Buy

      • 2 Replies to caffeine444444
      • Caff, trust me when I say I'm not trying to beat this horse to death but I have a little trouble understanding management's contention about Bermuda and the cash issue. I emailed SK asking if I could telephone him this week and I'm waiting for a reply. In the meantime, perhaps you could clarify a few things for me.

        You indicated that ChipMos will purchase 4.5M shares of IMOS from Thailin at the time of the IPO but doesn't IMOS own 42.7% of those shares making the total closer to 2.6M? Correct me if I'm wrong but it seems to me that even if all 4.5M shares are purchased, IMOS gets 42.7% of the proceeds.

        Can they use the proceeds from the IPO to make the purchase? How about the cash on hand at ChipMos Taiwan? If so, I don't understand why they need the money sitting in Bermuda. As DLS pointed out, most of the admin. expense comes from Taiwan. Moreover, whether they need $90M or $110M to buy the Thailin shares - or much less if they simply retire IMOS's 42.7% ownership, what does it matter? They have $250M in cash plus whatever they get for the IPO.

        I don't see why management couldn't do a short-term borrowing, right now, and start buying back the stock. This does not affect earnings per share other than a small amount of interest, nor cash flow generation. It could be paid off at the time of the IPO when everything comes together. While ChipBond has 600M shares outstanding and ChipMos Taiwan is offering only 120M even though, as you said, our company is well-known in Taiwan. Do you think another, say, $50M in debt will affect the the IPO price that much (if they use debt), especially when you consider we can improve our conversion rate by 15%? Even if it is a wash I'd rather have a higher conversion rate because the price should rise following the IPO.

        I've heard many reasons from management why they won't buy back stock now, some reasonable, some not so reasonable in my view. On the CC they were talking about doing one thing at a time. In email responses from SK I got reasons like they have to go to the BOD. Their message hasn't been very consistent. But this I know...they've done a poor job executing buybacks, size and timing, since late last year. This worries me.

        But here's my biggest concern right now and perhaps another reason the stock remains depressed: That they won't be acting in the best interests of current IMOS shareholders leading up to the IPO. If, for example, they start out the IPO at TW$20/share (really cheap!) I will be more than a little upset, especially since we shareholders are giving up 14% of ChipMos Taiwan to make it happen. I've been a shareholder since 2005 so why should I give up cheap shares to someone making their first purchase without a commensurate benefit? I feel strongly that the company should be buying back shares to increase our conversion ratio if IMOS shareholders are going to be funding the IPO. In addition, the situation with Thailin worries me a little because if they want to buy back their shares as cheaply as possible wouldn't they want a lower stock price? I admit it is not clear to me how that would work at this time and I hope to get more color on that when I talk with SK but part of management's job is to support the stock price and so I hope there isn't a potential conflict of interest here. Anyway, the cheaper the stock is the more they can repurchase with Bermuda money or whatever and the higher our conversion ratio goes. As shareholders we need to remain vigilant because I still don't think they are being nearly as shareholder friendly as they should despite the excellent job they've done running the company.

        Sentiment: Strong Buy

      • So is imos's share price going to go down even more then?

        Sentiment: Hold

 
IMOS
23.86+0.34(+1.45%)Aug 1 4:00 PMEDT

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