Friday, April 11, 2014

Small Add To Chippy

I recently added to long-time holding ChipMOS Technologies (IMOS), a semi-conductor test and assembly business. I added early on in Q1 at around $18 3/8's and also a very small add, this past week
@ 22 1/8.

IMOS has benefited from industry consolidation and the boom in smart phones and tablets. There is good chance that your phone or tablet’s chip sets have been tested and/or assembled by IMOS. The firm continues to land new business and transform itself from a debt laden firm just 5 years ago to a lean profit machine. IMOS is also currently undergoing a corporate re-shuffle, by way of a new stock issue on the Taiwan exchange, where IMOS is better known. I expect the U.S. traded shares to close the gap between their Taiwan listed shares.

The stock is up 23% YTD, and continues move closer to our intrinsic value estimate of $30

Chart forChipMOS TECHNOLOGIES (Bermuda) LTD. (IMOS).


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