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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

Chipmos Technologies Bermuda

(

IMOS

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Chipmos Technologies Bermuda as such a stock due to the following factors:

  • IMOS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.6 million.
  • IMOS has traded 110,294 shares today.
  • IMOS is trading at 26.07 times the normal volume for the stock at this time of day.
  • IMOS is trading at a new high 4.25% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on IMOS:

TheStreet Recommends

ChipMOS TECHNOLOGIES (Bermuda) LTD., through its subsidiaries, provides semiconductor testing and assembly services, and memory and logic/mixed-signal products. The stock currently has a dividend yield of 0.6%. IMOS has a PE ratio of 15.5. Currently there are 2 analysts that rate Chipmos Technologies Bermuda a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Chipmos Technologies Bermuda has been 158,000 shares per day over the past 30 days. Chipmos Technologies Bermuda has a market cap of $677.8 million and is part of the technology sector and electronics industry. The stock has a beta of 2.61 and a short float of 0.4% with 0.62 days to cover. Shares are up 16.9% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Chipmos Technologies Bermuda as a

hold

. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • CHIPMOS TECHNOLOGIES LTD has improved earnings per share by 26.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, CHIPMOS TECHNOLOGIES LTD increased its bottom line by earning $1.49 versus $0.85 in the prior year. This year, the market expects an improvement in earnings ($1.58 versus $1.49).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Semiconductors & Semiconductor Equipment industry average. The net income increased by 25.3% when compared to the same quarter one year prior, rising from $15.00 million to $18.80 million.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The gross profit margin for CHIPMOS TECHNOLOGIES LTD is currently lower than what is desirable, coming in at 25.80%. Regardless of IMOS's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, IMOS's net profit margin of 9.85% is significantly lower than the industry average.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, CHIPMOS TECHNOLOGIES LTD's return on equity is below that of both the industry average and the S&P 500.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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