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.
Richard, I think you are being overly critical of CODI. You say 1/3 of the companies are not performing.That means that you must believe that 2/3 are not bad. They pay a distribution close to 9% at current prices. What companies are paying that much of a distribution in the present interest rate environment that have no warts. Sure, some of their companies are doing better then others. If all were star quality the stock would be selling north of 30 or 40. As to the debt, they are getting nothing out of their interest in Fox and could sell it off and reduce a substantial amount of the debt if they elect to do so. Finally, I find it comforting to see the insider buying that has occurred in CODI. Would I put all my money in CODI. Of course not,but on a risk reward basis, I don't see why, with it's 8% plus distribution, it could not be part of a diversified portfolio.
silly-------I think you have it all wrong. IMOS was a great buy at $10, a real good buy at $14 and a real good chance to make decent money at $20.
royco-------Lets be honest.On a short term basis this stock sucks. No new buy back,no dividend of any significance,and absolutely no information whatsoever on the timing or nature of the expected conversion. The sounds of silence is deafening. This is simply frustrating for stock holders,but hopefully the ultimate payoff may well reward us all for our patience. Also,GLTL's.
buy-----On 1) the merger is probably not going to be completed until June..On 3),your guess as to Month and Year is as good as any.
sean--------I would hope whatever date you select will coincide with the completion of the restructuring. Then, I am confident we will have something to celebrate. Now a suggestion. In order to arrive at a date,why not contact management, tell them of our plans, and ask them when they intend to complete the restructuring process so we can make plans. ( I really had to laugh as I typed that ) Just give us the month and year would be sufficient for our purposes. Getting an answer to that question, knowing how guarded they have been, would not be a realistic expectation. On a more serious note, your desire to have both Caff and Jaret at the gathering is right on the mark.
turt----- What I don't understand is why don't we, as IMOS shareholders, get the dividend that IMOS receives from 8150 paid to us as a cash dividend or used to buy back our shares when they trade at a discount to fair value. Why do 8150 shareholders get the benefit of a nice dividend and we don't.?
jam--------I think it would be unfair to stick IMOS with the 2.38 million shares in employee stock options As I understand it,. these options were awarded to 8150 employees. The reason IMOS ( not 8150) awarded these options was because it was the only company that had shares that were publicly traded. Now,IMOS only owns about 58% of 8150 and 8150 is itself a publicly traded company. The fair way to handle these options is for IMOS to be responsible for 58% while 8150 should be responsible for the rest. Having IMOS shareholders saddled with the full responsibility of these options would result in a windfall for the 8150 shareholders. The number of IMOS shares outstanding appears to be a moving target that requires clarification and a degree of certainty.
turt------I believe we need management to give us the timetable for releasing the specifics of the end game(conversion) and when the restructuring will all be completed. That is what we need to put a charge into the stock price. Will they do it real soon.?Very doubtful.
buy-------They should be asked when they intend to announce the specifics of the measures they will take to complete the restructuring they have undertaken and when will the restructuring be completed. As stockholders, I think this information is not too much to ask of management.