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ChipMOS TECHNOLOGIES (Bermuda) LTD. Message Board

  • jj_js_007 jj_js_007 Dec 13, 2012 3:50 PM Flag

    IMOS Management did well

    For folks who have been through thick and thin with this stock, I must say the management did well contrary to what has been said here. Here are my rational:

    1. During the crisis, they lost two of their top customers and almost bankrupt. They said that they are going to diversify their customer base as well as their product portfolio. They did it. They have moved to higher margin mobile solutions and reduce their dependency on commodity DRAM business. Also, they have diversified their customer base.

    2. They have also turned around the company and is now almost net positive from heavily in debt. This company is a cash generating machine now.

    3. The have balanced between high growth and risks by being prudent on their capex investments. In fact, I said that they have learned their lessons from pre-crisis period where they borrowed heavily for capex investment for future growth. They understood now that future growth, no matter how certain is not certain. They would rather have cash in the bank as they do now.

    4. As the business improved but the stock price did not correspond accordingly, we asked them to do a buyback, give a dividend, and do a dual listing.....and they did/doing it. I'm one of those with an opinion that they should not do anymore buyback as this always masks the inefficiency and do not solve the root issues e.g. Home Depot during Nardelle years.

    5. We have also asked them to do a roadshow in the US and attract analysts coverage. They also did that as well as hire a PR person. Craig Hallum initiated favorable coverage. Since this is a microcap firm, I'm not sure we are going to attract more analyst coverage. After all, this is post-Lehman years and the analyst groups have been shrinking in many investment firms.

    6. They have also provide accurate guidance. In fact, their guidance is always spot on. No sand-bagging or over-promise

    Now, how many companies can we say do the above as 'advised' by their shareholders. I will challenge anybody to go over the last 5 years of earnings call transcripts and let me know what they said they will do but did not do it. You will be hard-pressed to find any.

    Sentiment: Strong Buy

 
IMOS
19.61-0.18(-0.91%)Aug 24 4:00 PMEDT