IMOSD - Chipmos Technologies

[constala]

Hi Saltybit what do you make of recent price weakness:-30% (for MU as well)?

[valueyoda]

They are all going through cyclical weakness, but the structural industry dynamics and long term growth should lead to substantial upside. Both Micron and Chipmos are very cheap based on normalized earnings, but both stocks haven't bottomed yet due to ongoing price weakness amidst a secular PC headwind. Micron is very buyable below $16.5 in Q3, provided that Samsung doesn't do anything irrational.

[saltybit]

Hi Saltybit what do you make of recent price weakness:-30% (for MU as well)?

 

I've actually exited the position earlier in the year due to a more attractive opportunity in NTLS.

However, I do think their troubles are short-term, and given that they are more well-capitalized than before, they should be able to weather a downcycle well potentially picking up a larger piece of marketshare.

 

I agree with valueyoda that MU and IMOS likely have not bottomed out yet.

 

 

[yitech]

Anyone still long this name?  Baupost still owns ~ 14%.

 

Merger spread with ChipMos Taiwan is about 40%. 3.71+34.9*18.71/32.83 ~ $23.6 vs $16.8 now.

 

http://www.prnewswire.com/news-releases/chipmos-bermuda-and-chipmos-taiwan-agree-to-merge-chipmos-bermuda-holders-to-receive-us1977-in-cash-and-stock-for-each-chipmos-bermuda-common-share-300207710.html

 

8150.TW price is here: https://beta.finance.yahoo.com/quote/8150.TW

 

The deal is scheduled to close in Q3.

[sae85400]

Greenhaven Road, exited it's position in the first quarter of 2016..

 

"The company has a very complicated capital structure with the majority of value derived from a Taiwanese holding. As the value of the Taiwanese holding decreases the attractiveness of owning IMOS decreases. We exited the position shortly after the end of the quarter to pursue more attractive opportunities."