Daily Stock Analysis: ChipMOS Technologies

By Fredrik Arnold

Wednesday, November 9, 2022 4:18 AM EST

ChipMOS TECHNOLOGIES Inc, bears the ticker symbol (IMOS). This is my first report on ChipMOS for my Viking portfolio or any of my previous seven Dog of the Week portfolios .

ChipMOS TECHNOLOGIES Inc provides semiconductor testing and packaging solutions to fabless companies, integrated device manufacturers, and foundries.

Back-end testing services are offered for high-density memory, mixed-signal, and liquid crystal display driver semiconductors.

Packaging and testing operations are done in Taiwan, but services are offered to a global client base. Testing solutions are carried out for the complete spectrum of integrated circuits, including digital logic, ASIC, high-speed digital, memory, mixed-signal, and LCD devices.

Customers seeking package solutions are also offered a diverse group of options that include leadframe-based packages, substrate-based packages, and others.

The company was incorporated in 1997 and is headquartered in Hsinchu, Taiwan.

Three key data points gauge

ChipMOS TECHNOLOGIES Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

IMOS Price

ChipMOS’s price per share was $20.34 at Tuesday’s market close. However, in the past year, ChipMOS’s share price fell by $4.82 or about 42.4%.

If ChipMOS’s stock trades in the range of $16.00 to $32.00 this next year, its recent $20.34 share price might reach $21.20 by next year. My upside increase estimate of $0.86 is $0.02 below the average of one year stock price gains for ChipMOS over the past ten years.

IMOS Dividends

ChipMOS’s most recently declared annual dividend of $2.876 per share casts a yield of 44.33%.

IMOS Returns

Adding the $2.88 annual ChipMOS dividend to my one-year price upside estimate of $0.86 shows a $3.74 potential gross gain per share.

At Tuesday’s $20.34 closing price, a little under $1000 would buy 49 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us $0.20 per share.

Subtract that maybe $0.20 brokerage cost from my estimated $3.74 gross gain per share results in a net gain of $3.54 X 49 shares = $173.46 for a 17.35% net gain including a 14.14% annual dividend yield.

In a year our $1K investment in shares of ChipMOS TECHNOLOGIES Inc would generate $141.40 in cash dividends. Of course, a single share of IMOS stock at Tuesday's $20.34 price is near 7 times less than the annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this a good time to buy ChipMOS TECHNOLOGIES Inc shares based on their dividends for the coming year 2022-23. The current dividend from $1K invested is 6.95 times greater than IMOS’s single share price. Consider yourself alerted. Now might be time for ChipMOS TECHNOLOGIES Inc.

All of the estimates above are speculation based on the past history of ChipMOS TECHNOLOGIES Inc. Only time and money invested in this stock will determine its market value.

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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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