Valuable Insights
Long/short equity, special situations, value, tech

ChipMOS: Stock Remains Dirt Cheap, 50%+ Upside By Year End

It's extremely unusual for a stock that's up 60% year-to-date to be the cheapest holding in your portfolio, but that's exactly the case for us with ChipMOS (NASDAQ:IMOS). Typically, only troubled companies with secular headwinds trade at 2.3x EV/EBITDA and provide a free cash flow yield just under 20%. But ChipMOS actually has some of the strongest fundamentals in the entire technology sector. With Micron (NASDAQ:MU), ChipMOS's second-largest customer, set to report on Wednesday, we thought it worth revisiting the story, and outlining several near-term catalysts that we expect to drive over 50% upside by year-end.

We see three major near-term catalysts that should drive ChipMOS shares significantly higher in the months ahead, and believe it...

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