Today's Bloomberg article on Samsung "dissappointing results"(only made $8"+"Billion in the quarter) had this tidbit, known to all followers of IMOS (and its large customer MU)
A limited chip supply and increasing demand for mobile semiconductors, especially from China, is helping push up prices, said Kim Young Dae, an analyst at Taurus Investment & Securities Co. in Seoul. Samsung makes more than half the world’s mobile dynamic random access memory chips.
“The continued rise in chip prices is expected throughout the latter half of the year,” Kim said. "
Good for MU et al, good for IMOS.
Longs hang in, we've only just begun, below 20 seems a pause that refreshes, new base forming before the 120M sale, August CC. To paraphrase, those in 2013 who (bail and) fail to learn from (recent 12-24-month) history (of this company's tremendous execution to great profitability and FCF) are doomed to lose out.
Interestimg trading in Thailin shares last night in. The stock opened up limit on huge volume in the 1st 10 minutes and only traded a few 1000 shares after. There was no news out but maybe Taiwan investors are hearing that the IMOST offering is going to happen soon. Thailin is trading 50% below book value with more cash on hand with the sale of the IMOS shares then the book value. That means that they don't value any of the 2 factories. Thailin stock price won't last long at these price nor will IMOS
For those of us who have owned IMOS long and big, yeah, we have a pretty good reason to be thrilled that shares are back at $20. But no, this is not the top. Show me a stock trading at similar EV/EBITDA or FCF yield metrics that is decently (let alone well) positioned.
So personally, am thrilled. Am thrilled enough to book Vegas. But am not selling. Chipmos Taiwan shares will be successfully placed with top-flight institutions, shares will trade up (enormously) and US shares will follow suit.
Not sure where you come out on IMOS - your tone doesn't suggest a favorable view. Still a lot of upside, but if you're short, it will be fun crushing you. And yeah...Vegas will be fun.