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ChipMOS TECHNOLOGIES (Bermuda) LTD. Message Board

  • imosinvestor imosinvestor Oct 28, 2013 11:40 PM Flag

    Just found IMOS, could use some clarification thanks.


    I'm hoping somebody could help clear this up for me. From what I can tell, IMOS is a holding company for a company based in Taiwan. Recently they sold 180 million shares of a Taiwan based traded company. Is that company their main subsidiary? If so, does this sale mean they have a lower percentage of ownership and we will now have lower earnings attributable to IMOS from now on as a result of owning less of the company with real operations?

    Could really use some help figuring this whole thing out, thanks.

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    • ChipMOS Bermuda is a holding company and owns a little over 60% of ChipMOS Taiwan (it was a little over 80% before the sale of shares), and ChipMOS Taiwan owns around 50% of a smaller company called ThaiLin (it was a little over 40%, but ThaiLin has just recently done some buybacks)

      The shares that were sold are now on the Taiwanese stock exchange, and that is to facilitate IMOS eventually being an ADR of the Taiwanese stock which will have a few advantages in the long run. The money raised will partly be used to buy some shares that ThaiLin owns of IMOS, and partly to do a buyback on the open market of IMOS shares. The buyback will partially counteract the dilution from the sale of shares in Taiwan. I wrote an article on this on Seeking Alpha a little while back if you want more detail.

      That may sound a bit complex and confusing, but in about half a year ChipMOS will be a single company trading in Taiwan with ADRs trading on the NASDAQ for the Taiwanese shares.

      Sentiment: Strong Buy

      • 2 Replies to jaretwilson
      • jaretwilson,
        Sorry if this was confirmed before but Samsung article showing excellent 3rd qrtr surge referenced China's Huawei:
        Seoul (AFP) - Samsung Electronics shipped a record 88.4 million smartphones in the third quarter to take its global market share above 35 percent, while rival Apple's slice thinned, research data showed Tuesday...
        Samsung's smartphone shipments in the July-September period marked a 55 percent surge over the same period last year, the independent research firm Strategy Analytics said….
        Apple reported a third consecutive quarterly decline in earnings on Monday, while Samsung last week posted a 26 percent increase in third-quarter net profit, bolstered by demand for smartphones and memory chips...
        The largest shipment growth in the third quarter was recorded by China's Huawei Technologies Co., which shipped 12.7 million units -- up 67 percent from a year ago.

        JW, Understanding that they are focused on lower end smartphone pricing, but can you (or others) shed any insight on which OSAT companies or their primary customers are getting a major piece of Huawei's action? TIA.

      • Thank you for the reply, I read your article. Will the lowered earnings (as a result of owning less of Taiwan) show up in this quarter's earnings report on November 18th? If so, do you think that would cause a dip that day and present a good buy-in chance?

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