IMOS

[Michael]

IMOS has just been granted an important new patent entitled "Substrate-On-Chip (SOC) Packaging Process" (Invention No. 207525) by the Intellectual Property Office of the Ministry of Economic Affairs of Taiwan. The Company has also been granted related patents in Taiwan (Utility Model No.193887), the United States (US 6,689,638) and China (ZL 01142244.0) for its SOC packaging technology in the past few years. (you can read the details here: http://biz.yahoo.com/prnews/050713/hkw003.html?.v=11 )

IMOS is a leading independent provider of semiconductor testing and assembly services primarily to customers in Taiwan, Japan, and the U.S. With advanced facilities in Hsinchu and Southern Taiwan Science Parks in Taiwan and in Shanghai, ChipMOS and its subsidiaries provide testing and assembly services to a broad range of customers, including leading fabless semiconductor companies, integrated device manufacturers and independent semiconductor foundries.

The new patent will not only help them staying competitive but they are also looking for other companies to license the SOC technology. This could be a nice little money spinner for them.

Even though this patent is important I don't expect the stock to be on fire today. So why am I wasting your time?

Well IMOS (or Chipmos) is one of those small fundamentally beautiful Gems. They have been through a hard time with over capacity and lower prices but that is hopefully history now. Today there is a shortage of capacity and they have just increased prices for their services.

They are in the process of merge with Chantek a merger that is intended to increase the size of the combined company, lower its costs and increase its competitiveness in the market.

The positive development has not gone unnoticed by the Analysts following the stock (which unfortunately is very few!): Analyst Stuart Muter of RBC Capital Markets reiterates his "outperform" rating on ChipMos Technologies (CHY.FSE), while raising his estimates for the company. The target price has been raised from $9 to $11.

In a recent research note, the analyst mentions that channel checks indicate that the company's performance in June was robust, following a strong performance over the previous couple of months. The analysts expect the company to be able to achieve gross margins of 25.5% in Q2, as compared to the previously estimated 24.0%. The EPS estimates for Q2, 2005 and 2006 have been raised from $0.12 to $0.15, from $0.55 to $0.69 and from $0.72 to $0.88, respectively.
   
The patent awarded today could accelerate the positive trends for both the company and the share price.

[la-onda]

I have bought IMOs @ 6.59 $ 

http://www.3stocksonfire.org/trading/index.php?topic=368.0

Q2 & Q3 will be much better as expected by the MARKET

[stocky]

mic are you long this stock? Whats the best entry in your opinion?

[Michael]

Hi Stocky,

Yes I am long the stock since start of June.

I am not particularly good to select entry points  (actually i would ask a guy like yourself that question  ). I expect the stock to go higher so now would be a good time to buy.

[stocky]

Thanks mic, I would like to buy it near 7, hope it pulls back to this level.

[Michael]

Stocky, as I said you are probably better at entry points than me. (at least in this case  )

Just think about AOBO. I could kill myself that I didn't buy below 1.7 when I had a chance!!!

Congratulation if you bought.

[la-onda]

updated chart:

[Melf Elf]

I have bought IMOs @ 6.59 $ 

http://www.3stocksonfire.org/trading/index.php?topic=368.0

Q2 & Q3 will be much better as expected by the MARKET

I don't know how I missed seeing this folder yesterday    I saw your question to David in another folder, so I downloaded the stock, saw that it already had broken out, bought it, then ran the search function and posted the chart breakout in your June 2 folder.  (I don't see an "out of breath" face on the toolbar...pant...pant...pant).

At any rate, thanks for your work on this stock, which I applauded in the other folder 
Applause to Michael, too, for his nice research.  Hope we make some $$$ on this one.

[nikao]

will see if the stock is gonna rebound to test the break out.. will jump in if it does and the support will hold..

(hope it doesn't stop on the closure of the gap of nov. 2004)

[Melf Elf]

(hope it doesn't stop on the closure of the gap of nov. 2004)

IMOS got to $7.71 yesterday, right in the middle of that $7.63 - $7.81 gap.  Although we've got resistance from $7.63 to the October 7, 2004 high of $9.80, there was only one month of trading in that range ($7.63-$9.80). 

We might have to "chip"  away at that resistance for a bit, but we're attacking one month's worth of resistance from a breakout of a nice eight-month pattern.  Everyone who bought and is holding IMOS since the October 27, 2004 gap down has a winner, so they should be "strong hands" when we run into selling. 

[la-onda]

anybody used fridays price action for adding more IMOS shares?

updated chart, still long & strong:

[nikao]

I stepped in on friday at 7,42

[nikao]

the resistance of the pricechannel now forms support according to my TA chart
yesterdays low was a perfect test of 2 resistances; horizontal and another price channel.
over all looking very good i think

[nikao]

it tested the support of the price channel today.
What im curious about though is the former price channel.
It seems like the stock is using the support of the newer (with a steeper angle) price channel, but the resistance of the old one; if this is true we are seeing a triangle?

[Melf Elf]

Nikao,

It looks to me like yesterday's low was at the top of the Ascending Triangle.  Former resistance provided support.