Lizh, Sean------When 8150 started trading as a public company, an inherent conflict of interest was created. The interests of 8150 stockholders and IMOS stockholders were not aligned,but were nevertheless governed by the same BOD. I think the IMOS stockholders tolerated this conflict because we were of the view that our shares would eventually be converted into ADR's of 8150 which would align the interests of both group of stockholders.Unfortunately, the process has taken much longer then any of us anticipated..The inherent conflict of interest will be eliminated when our shares are converted to ADR's of 8150 and our interests will then be aligned with the interests of 8150 stockholders. But, in the unlikely event the special committee and BOD decides it is not "feasible" to effectuate a merger and conversion,then the only way to remove the conflict of interest is to elect a BOD for IMOS separate and apart from 8150.
turt,royco, et al --- I am of the view that the BOD of IMOS does not appear to have the best interest of IMOS shareholders in mind. The action awarding 8150 stockholders with an almost 5% dividend while IMOS shareholders,received a puny 14 cent dividend. Sure, they authorized a buy back,but that will not begin for several weeks..The 5% dividend benefited only the 8150 holders while the buy back will eventually benefit both 8150 and IMOS shareholders when the repurchased shares are retired. Would these things be happening if IMOS had a BOD separate from 8150? Some large stockholder should put the current board on notice that a failure to announce the merger and the specifics of the conversion in a reasonable timetable may cause IMOS shareholders to mount a serious undertaking to replace the IMOS board with an independent board. I don't think we should continue to indefinitely tolerate the inherent conflict of interest that presently exist.
shortdilbert------- Can't agree with you more. In fact,I voiced the same opinion a long time ago. Unless and until the 8150 shares we own thru IMOS are converted to ADR's, the interests of IMOS shareholders and 8150 shareholders will not be aligned.
Caff------Well then,maybe its time to put you on the BOD. They are obviously lacking the ability or desire to take the steps to create shareholder value. Why they are not aggressively buying shares at these levels constitutes a lack of fiduciary responsibility.
You really can't fault investors for not trusting them. After all this time, they put out a press release injecting the question of the "feasibility " of a merger and the conversion. The uncertainty created by this may have had a very negative impact on the stock price.
Thanks Caff. That was also my belief,but I was caught off guard with the question of feasibility. I would have much preferred them to say "we have formed a committee to determine the final steps to be taken to complete the restructuring process".
What are the chances the committee concludes it is not feasible to effectuate a merger. Very hard to imagine that will be their conclusion. There is no justifiable reason for the continued existence of IMOS. It is simply a holding company with only 2 assets, cash and a 58% ownership interest in 8150. Its continued existence would serve no useful purpose from an economic or logical perspective. How any reasonable person could reach a different conclusion would, in my judgement, raise serious questions as to the good faith of this committee.
cpafred---8150 has at its disposal at least 300 million. What some,maybe most, here believe will happen is 8150 will buy a large block of 8150 shares from IMOS at a price to be determined. I think the price will be,or perhaps should be, between 45 and 50. After this, it is believed that the remaining shares of 8150 held by IMOS will be converted into ADR's of 8150. The money realized from the sale of the 8150 shares plus any other funds in Bermuda will be paid to the IMOS shareholders and IMOS will cease to exist. Thus,the contemplated merger will result in the elimination of IMOS, a holding company, and the shareholders of IMOS will receive cash and ADR's of 8150,the operating company. I think this is the ultimate goal of the restructuring process. Am I right?
caff-------I have the utmost respect for your opinions regarding IMOS,but unfortunately they have shown no ability in the past to move with such alacrity. I agree that it "should not take more then 2 month ".,but they move at a snail's pace.
marnis et al------I agree with you that the boom bust cycles that plagued MU in the past has once again reared its ugly head. Despite the limited number of players now in this industry,MU was still unable to manage their business in a way to minimize the impact of the headwinds they encountered. I expect the stock price to recover in time. However, unless and until they demonstrate the ability to avoid these boom bust cycles, they,as you noted,will not be accorded a market multiple.
silly------If you think you "can speak with certainty for the majority of long term investors here" you are sadly mistaken. Indeed, the more you post, the more opportunity people have to realize you know very little about investing and your views are mostly completely worthless.
marnis-------To what extent do you think Samsung building a new facility has called into question the ability of the oligopoly to maintain supply and price. Obviously,maintaining the present supply capacity will benefit the oligopoly. A meaningful increase in supply will lead to lower prices,a possible price war, and a return to what this industry experienced in the past. Because MU is an important IMOS customer, this change is something we don't want to see.
jam------ IMOS is a holding company. There are countless holding companies on the major exchange that sell at discounts to net asset value. It is not at all unusual.You are absolutely correct that the holding company (IMOS) must be eliminated by the issuance of ADR"s of 8150 and its existence terminated. And, the sooner this is accomplihed, the better.
turt,jam,others--------. As i see it, management's plan appears to involve a desire to buy a large block of 8150 shares from IMOS to reduce 8150's outstanding shares. That was probably the reason they took out a loan in excess of 300 million. The problem for management is to determine a fair price to pay for such shares. And, because they are wearing 2 hats (IMOS and 8150) it is probably very difficult to arrive at a price that would be fair to both set of stockholders. For this reason, I have always felt that they should return the Bermuda money to the IMOS stockholders,convert the IMOS shares on a pro rata basis into ADR's of 8150, and then utilize the 300 million to buy back the ADR's and retire the 8150 shares represented buy each ADR. This would relieve management of the difficult problem of arriving at a fair price to pay for the 8150 shares it wants to buy from IMOS. It would also accomplish their objective of reducing the number of outstanding 8150 shares. How far along they are in their plans for the conversion and end game is ,in my opinion, any one's guess. I would like to believe , as turt says, that this will all be done within 2 months,but I have my doubts..
turt------The money in Bermuda should be used exclusively to benefit only the IMOS shareholders. It should not be used to benefit the 8150 shareholders. Further, while management talks about benefiting all shareholders equally,their actions do not support their words. A perfect example is the disparity in dividends awarded to 8150 shareholders compared to the puny dividend management awards to IMOS shareholders.More specifically,8150 shareholders were awarded a dividend of about 4 or 5%. Do you think management is going to give IMOS shareholders a comparable dividend? When the conversion takes place, the money in Bermuda should be returned to the IMOS shareholders. Because management has in the past been rather inept in conducting effective buy backs, I would prefer to get that money back as a special dividend. Turt, you are right in that there is no one looking out for the interests of IMOS shareholders. While management must walk a narrow line between the interests of 8150 and IMOS shareholders, unless and until the interest of both are allied by the issuance of ADR"s,the perception of a potential conflict of interest will persist.
johnboy----- What really upsets me is the failure of management to pay out to IMOS shareholders, as a dividend, at least a major part, of the dividend it receives from 8150. While declaring a dividend is within the discretion of management,the disparity in dividends received by 8150 and IMOS shareholders,cannot,in my judgement be justified on a rational or fairness basis. It must be remembered that the money in Bermuda, to a large extent, was derived by selling off 40 % of a company in which we once held a 100% interest. So, it is not fanciful or unreasonable for some,maybe most, here to look upon those funds as " our money ". Having said that,I also share your concern regarding the money in Bermuda.
royco. turt------Would like for them to tell us exactly what " catalysts" options they are considering as part of the restructuring process. Also, providing a date for the completion of the restructuring would be very helpful. Unfortunately, I will be very surprised to hear them address either tonight. But, with each passing day,, we are undoubtedly getting closer and closer to the grand finale,whatever that might ultimately be.
Richard , Did you listen to the conference call? Why do you think that first quarter results will be the same for the next 3 quarters. There is a great deal of seasonality to the results of some of these companies.To take the first quarter results and conclude the results will be no better in each of the other quarters is baseless speculation,Moreover,it is contrary to the expectations of management. The picture you are trying to paint is based on misleading and speculative assumptions.