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ChipMOS TECHNOLOGIES (Bermuda) LTD. Message Board

  • jayand777 jayand777 Jun 5, 2013 10:02 AM Flag

    Market Savvy,,,

    Here is another company that really knows how to promote itself. There for, it gets a fair market valuation. MCHP, Microchip Tecnology. Analysts have an eps estimate of $2.26 for this year and $2.58 for next year. Stpck trades at $37.

    Yesterday, in mid quarter, they raised their guidance, and the stock bounced a bit:

    " Shares of chip maker Microchip Technology (MCHP) are higher by 11 cents, or 0.3%, at $37.45, and earlier went as high as $38.35, after the company yesterday said after market close it now expects June-ending fiscal Q1 revenue to rise in a range of 4% to 7% versus its prior view for 2% to 6% growth. The Street is currently modeling roughly 5% growth.

    Microchip CEO Steve Sanghi remarked that the company “have continued to see a very strong bookings and business environment in the June quarter.”

    “We have received excellent visibility from our customers, allowing us to build our products in a good mix and meet our customers’ requirements for the quarter.” "

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      " Stifel Nicolaus’s Kevin Cassidy reiterates a Buy rating on the stock, while raises his price target to $50 from $48, writing that “We continue recommending the MCHP shares for the company’s ability to recover from semiconductor cycles faster than its peers.”

      “Also, we view Microchip’s announcement as positive for the broad-based industrial semiconductor players. We maintain our Buy rating.”

      Terence Whalen of Citigroup, who has a Buy rating on the shares as well, raises his price target to $49 from $47, writing that it’s good news for analog chip makers in general: “Recall that our recent Asia distributor checks signaled shorter lead times coupled with increased demand,” he writes. “MCHP is one of the first non-commodity firms to see demand tightness which we believe is positive news for other analog companies headed into the Jun-Q.”

      Adds Whalen, “Coupled with positive demand comments, we believe that Jun-Q utilization could improve to 80% from 75% in Mar-Q.”

      All very similar metrics to IMOS. Markets are not always efficient. Management teams play a big role in reasonably promoting themselves. Chipmos is entirely too cautious in this respect.

      • 2 Replies to jayand777
      • I was pleased to hear some positive comments in the Cowen presentation a few days ago. SJ said it was a "second honeymoon" for him. Tim Arcuri asked about gaining market share from Novatek, and in response SJ talked about how much the LCD driver industry is growing and that it would be up 30% while their capacity is increasing 20%, and that their customers are keeping after them just to MAINTAIN market share. I think that was a really good answer because he could have just said, "We expect our market share to hold steady." but instead turned it into a positive that highlighted the growth they were experiencing. They also said something about this year and next year being really good timing for them due to the strength in the industry and the restructuring of the corporate structure. I was glad to see them highlighting some positives. I think they are genuinely excited by how things are going, and it's starting to come across better.

        Sentiment: Strong Buy

      • great insight Jay!!!

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