Chipmos Technologies (IMOS)

[madprophet]

Info on the Baupost Group recent buying of both IMOS and its customer Micron....


Baupost initiated positions in two semiconductor related companies: it bought about 42 million shares of data storage device manufacturer Micron Technologies MU -4.52% and 2.8 million shares of semiconductor testing company ChipMOS Technologies IMOS -1.57% . Micron has more than doubled in price over the past year, and while it has been unprofitable on a trailing basis it did break into the black for the fiscal quarter which ended in May. Wall Street analysts predict that it will do well next year, and so the forward P/E is only 9, but that does seem a bit optimistic given recent results. ChipMOS's market cap is only about $500 million (though with plenty of dollar volume for most investors) which places its valuation at 12 times trailing earnings, though recent results have been flat at least on the top line. We would note that ChipMOS's beta is 2.7, demonstrating that its stock price tends to react strongly to changes in market conditions. Billionaires George Soros, Howard Marks, and Glenn Dubin are investors in Micron's convertible notes.

http://www.marketwatch.com/story/3-takeaways-from-the-baupost-groups-13f-2013-08-15?siteid=yhoof2