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ChipMOS TECHNOLOGIES (Bermuda) LTD. Message Board

boobermonkey 1 post  |  Last Activity: Jul 8, 2014 2:47 AM Member since: Jan 3, 2005
  • Reply to

    Suggestions on a fair conversion?

    by caffeine444444 Jul 3, 2014 3:32 PM
    boobermonkey boobermonkey Jul 8, 2014 2:47 AM Flag

    I'm not one to post many messages, but have been on the IMOS roller coaster since $30 pre-reverse split but was lucky enough to load the truck near the bottom. I've been trading IMOS on and off on the way up, and now have hold off on trading IMOS as I believe the end game is truly near and we could gap up to the $30 level any day now on the back of a corporate structure collapse announcement. My strategy is holding shares and selling puts.

    Of the many methods of conversions discussed, I am firmly against the 20 or 30-day window formula based on 8150 price. As some have pointed out, manipulation can easily be accomplished and 8150 price can be held down fairly easily since daily trading volume is only 2.7 million, or 115 million TWD ($3.8 million USD).

    We have been "nice" in the past and sold 8150 shares on the cheap at $20 TWD not that long ago to get Taiwan listing...maybe 8150 should return the favor and issue shares back to us at a discount, at say $25 or $30 TWD, in exchange for all the remaining cash in IMOS. Then, we can do a straight swap of IMOS shares (30 million) for an increased number of 8150 ADR (ie 522 million + x million bought with IMOS cash). At that point, the gap between IMOS and 8150 prices should be gone. If liquidity is a problem, then just register to move some ADR from NASDAQ back to Taiwan. The net effect is that IMOS as we know it will disappear, 8150 will increase its cash on hand but shares will be diluted, IMOS shareholders get a premium in conversion ratio, 8150 will trade on Nasdaq as ADR, and IMOS share price will be coupled to 8150 share price until conversion is carried out.

    Given the great business environment as Caff pointed out with LCD, memory and 4K TV, I would be happy to get additional 8150 shares...

    Sentiment: Strong Buy

IMOS
24.83+0.08(+0.32%)12:44 PMEDT

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