The most important question ,namely. " what is 8150 actually worth " is probably the most difficult to get an accurate answer at this time. We have it being traded around NT 34 ( undoubtedly being supported to some unknown degree by the ongoing buy back ) while Tsinghua is willing to pay NT40. Because they must view this as a good investment, it would not be unreasonable to assume they must value 8150 stock at somewhere north of NT40. Moreover, the validity of managements expectations regarding the revenue projections of the China expansion will have an important impact on the value of 8150,particularly if those revenue numbers are realized. But, the factors that will most importantly impact 8150's valuation are at this point really unknown. The impact of the conversion, the Tsinghua investment, the China expansion, potential sizable buy backs, are currently unknown factors that will have either a negative or positive impact on the value of 8150 going forward. You would have to be clairvoyant with all these unknowns to project with any degree of certainty where 8150 will be trading in 3, 6, or 12 months from now.
IIG--------Up to this point, it cannot be seriously argued that the restructuring undertaken by management has benefited IMOS shareholders in any significant way. Whether any meaningful benefits are realized in the future remains to be seen.
baron------I assume Larry refers to Larry MIller, the CEO of STON. He recently purchased 1000 shares, but owns over 100,000 shares. Collectively,it appears the insiders of STON own almost 10% of the company.
latrdaze------- You once posted that you were long. But,,based on your posting history that was not true. You now deny that you are short. Then, the reasonable question to ask is why do you waste your time and energy posting on this board. And you have the audacity to post some nonsense and call someone else a loser.
So, you consider STON a " scam " because they advertise a sale in the local Philadelphia papers?. Do you deny that by acquisitions, STON has increased their cemeteries from 132 to 307 and their funeral homes from 7 to over 100? Yes, reasonable people can agree to disagree,but when you call STON a " scam", when you say STON makes no money, when you try and compare STON's debt to some over leveraged companies in the energy space, as you have done not once,but twice, your reasonableness can be called into question. You apparently believe everything a short seller ( who has a vested interest in driving the stock price down ) says and nothing STON says. It's obvious you don't like STON and that's your prerogative. But, to use libelous words like " scam " to describe a legitimate business without factual support is not helpful.
(continued) I think the business STON operates in is a good,if morbid, business. It is a business that has endured in one form or another from the beginning of time and will be here long after we are all gone. The business is recession resistant in that people will die whether the economy is good or bad. In this connection,while many of the so called best companies had to cut or eliminate their dividends during the great recession (2008-2009), STON continued to pay its distribution. The business also has significant barriers to entry. Moreover,. going forward,you have the benefit of the demographics in your favor. The aging of the "baby boomers" in the coming years will present a growing source of potential business. Would I put all my money in STON to get that big distribution. Of course not. Everyone should do his own D.D. The over 10% distribution is very inviting,but STON may not be for everyone. There is risk in owning stock or MLP's and usually the larger the payout the greater the risk. I personally believe STON can be a part of a diversified portfolio of an investor willing to assume a business mans risk to receive a generous 10% distribution in this period of very low interest rates. GLTL
latrdaze------- It appears you have little or no understanding or appreciation of how MLP's operate. Because they pay out most, if not all, of their distributable cash flow to unit holders, the only way they can grow the business is by issuing debt or selling units. STON has done both to grow its business. The number of cemeteries owned has increased from 132 to 301. The number of funeral homes owned has increased from 7 to over 100. They have spent over $350 million on acquisitions and their revenue has increased from $89 million to $398 million. Their total debt is $319 million which is only 27% of enterprise value,down from 40% in 2012. If you had an open mind and looked at the recent presentation STON made at the Raymond James conference you may get a better understanding of STON. You rely exclusively on GAAP numbers which management has repeatedly said does not show the true performance of the company. The companies merchandise trust has over $450 million and STON will,over time, receive, the principal plus interest and dividends.Over the last 5 or so years this trust has apparently generated annual returns ranging from 6% to 9%. The perpetual trust has over $300 million and the interest and dividends from this trust accrue to STON. The distribution STON pays has increased from $1.85 to $2.64. When you consider the funds in the trusts, the over $350 spent on acquisitions, the total assets of the company, and the distributions paid by STON,to say, as you do, that the company makes no money is silly. Maybe under GAAP accounting they make no money. But, if STON paid off all its debt, and met all its other obligations, it would still have over $100 million. If they make no money,where did all this money come from? They have spent more on acquisitions then their total debt. Their acquisitions are accretive and probably will continue to be in the future. ( continued in next post )
Do you honestly think another strategic party is going to buy IMOS after it no longer has a controlling interest in 8150? Do you believe management will entertain outside offers? You also have the problem of a China company unable to buy a Taiwan company. I believe the possibility of IMOS being bought by some entity other then 8150 is very remote.
jaret,buy,buy,buy,marnis,et al.---------The nightmare scenario some of us feared,namely being presented with a conversion proposal that failed to meet our reasonable expectation,is upon us. Quite frankly,I thought we would receive a 20 or 25 % premium in the conversion process instead of the rather puny premium proposed. Unfortunately,as I see it, we have very limited options. We can vote to reject the deal as proposed,but where would that leave us. Our main bargaining chip,our control of 8150, will be gone if and when the deal with Tsinghua is approved and the additional shares of 8150 are issued. If we vote in favor of the deal as proposed,as Marnis noted,the value of our investment will be tied directly to the business generated by 8150. If, going forward, they are successful in developing new business from China in an amount forecast by management, then the value of our ADR"s would be expected to increase in value,perhaps even greatly. At this point,it may be that we have to hold our nose and approve the deal. I suspect,it is like some,perhaps many,voters view the upcoming presidential election.
This is the second time you have posted this. It is pure nonsense in that it has absolutely no relevance to STON. In fact, STON is probably under leveraged. Its debt constitutes only 27% of enterprise value. To compare the debt level of STON to some companies in the energy space leveraged to the hilt when oil was $100, is, to put it mildly, totally disingenuous,