turt-----I have always been of the view that the buy back,if any, should be conducted after,not before, the IMOS shares are converted to ADR's. This would relieve management of the difficult decision of determining what to pay for the 8150 shares if the buy back was conducted before the conversion. After conversion,.they can buy back the ADR's which will reduce both the number of outstanding ADR's as well as the number of 8150 shares represented by each ADR. Having said that, I don't think that is how management will ultimately proceed. As I have stated earlier, I agree with Caff that I don't think we will see a significant move up in either 8150 or IMOS until the conversion formula is revealed. This uncertainty kind of places a lid on the share prices.
jam------I am afraid we longs will have to resign ourselves to remain frustrated with IMOS stock performance until management reveals the conversion plan. Until then, unfortunately I don't see any significant upward move for IMOS stock price.
turt------I would think some people are selling because they believe they can make more money elsewhere. They have lost patience and confidence that management will bring this situation ( the conversion ) to a successful conclusion any time soon. There certainly is no reason to hold for the puny dividend they pay.
daniellaidman------While it is undeniable that IMOS is now a much better company then during the 2007-2008 period, management has never previously demonstrated a proclivity to conduct an aggressive buy back of IMOS shares. Thus, I would not expect management to be buying back shares anywhere near $30 a share. With the money on hand in Bermuda,I agree with you that the $15 million buy back is rather limited,but better then nothing.
I don't believe the rather stealth buy back will have that much of an impact on the stock price. Now, the conversion plan's impact on the stock price, when management reveals the plan, is an entirely different matter. We are all patiently waiting for that event.
turt------If history is any guide,they seem to place a tight reign on the price they are willing to pay in a buy back. We don't know what that price might be,but if 8150 does not move up significantly from here,I doubt they will buy above $25 a share.
caff------That maybe. I was only saying that if they buy 8150 shares from IMOS,then those shares will be purchased before,not after, the remaining shares are converted to ADR's. These transactions may well occur concurrently with the payment to IMOS shareholders of available cash in Bermuda as well as the proceeds from the sale of the large block of 8150 stock,should there be one.
turt------I really don't know,but I would speculate that they will buy a large block of 8150 stock (perhaps $300 million) from IMOS at a price between 45 and 50 a share This purchase will be made before they convert the remaining 8150 shares owned by IMOS into ADR's. I just want them to reveal what their expected plan consists of instead of leaving us all in the dark. Surely, we have every right to expect that after all this time management must have already formulated and agreed upon a plan to bring the restructuring to a conclusion.Lets have it.
turt-------I doubt they are authorized to buy above $25 a share. At some point,a buy back does not make economic sense. What that price might be, is a matter of opinion based on the evaluation of all available factors.
Folks, if IMOS continues to advance,I think you can kiss the buy back good bye. If history is any guide,the share price will soon rise above the level at which they would be authorized to conduct the buy back. So, if they don't go forward with the buy back, we will be placed in the envious position of getting more cash returned to us when this deal is completed.
dividend-man-----------I think Bama is clearly the better team and should win if they do not beat themselves. Nevertheless,Mizzou has been playing some good football lately and the odds makers 14 point spread seems excessive.
caff--------I think you are correct. What I think this means is a purchase of 8150 shares from IMOS by 8150 in the amount of $330 million,then the conversion of the remaining shares of 8150 into ADR's. The question is what price will 8150 pay IMOS for the large block of stock which will transfer control to 8150 from IMOS to 8150..
royco,sean------Remember some time ago we had a horse race between MU and IMOS. Clearly,MU has won that race and appears to have graduated into allowance, if not stakes company. Meanwhile, IMOS remains an inexpensive claimer. GLTLongs, and everyone have a great and happy thanksgiving.
royco-------Looks like someone is just nibbling on the stock. Once it reaches a certain level, the nibbling stops and the stock price retreats. This behavior will end when we start getting some aggressive new buyers who buy with a sense of urgency. It will come. Just don't yet know when. But, the fundamentals and the grand finally to the restructuring will provide the catalyst to unlock the inherent value in this stock.GLTL.
marnis-------If you were in charge of IMOS the last few years I am very confident we would have a much more shareholder friendly management, a much more transparent management, and a management team doing their utmost to create and enhance shareholder value. Nevertheless, as frustrated as most of us have been with the rather slow pace to reach the conclusion of the restructuring and F.V.,lets hope the financial rewards justifies the wait and patience exhibited by most longs.
marnis-----------I have no quarrel with your post except your statement that "we all know what is going to happen". I surely don't know any of the particulars regarding the plan they have for conversion and the collapse of IMOS. At this time, management has kept the plan,if they have already formulated and agreed to one, shrouded in secrecy. All we can do is speculate what ultimately will be the plan and its various elements. What I think we all know,if we look at this realistically, is that the stock price of IMOS is undervalued. The expectation is that the stock price will improve as management starts to deliver on its buy back as well as announcing the plan to wind up the affairs of IMOS.
caff----------Do you know the legal justification for the 30 day cooling off period. Is this a Taiwan law or regulation. If so, why would it apply to a Bermuda company conducting a buy back of a stock listed here in the United States.
sean------They are far from shareholder friendly. They only give lip service to creating shareholder value. The delay in commencing the buy back,without providing a justifiable legal basis for doing so, ( and I question the reliance on the advice of a Taiwan law firm on the laws and regulations governing the buy back by a Bermuda company of a U.S.listed stock ) is inexcusable.