Positioning no disclosures inside 60 days, left as found
Options put/call open interest 0.50, read 2026-11-04
Ethical does not pass the values gate
Price43.78 USD
Fair value21.20Our model only; no analyst estimate to cross-check.
Ethical score70.0/100
Value readOvervaluedas of 6 Nov 2026
Our investment reviews on this name
2026-10-25Read Distribution62.34-29.8% to today ✓Markup gives way to Distribution
2026-07-02Read Markup61.95-29.3% to today First review on file: Markup
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
ChipMOS TECHNOLOGIES INC. holds its Distribution at $43.78. Elevated stress, defensive posture warranted, held for 8 days.
As held on the ledger · 2026-11-06
Phase
Distribution · caution
Quantitative state
Elevated stress, defensive posture warranted, held for 8 days
Price at the screen
$43.78
Valuation
24.26 trailing · 50.68 forward price to earnings
Values screen
FAIL· score 70.0
Beta
1.47
The Workings
Five Screens, Shown in Full
Does not pass. Debt ratio
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
36.00%
Below 33%
Interest-bearing debt is 36.0% of its assets, above the one-third ceiling the screen allows.
Fail
Interest-bearing cash
0.30%
Below 33%
Cash held in interest-bearing accounts and securities is 0.3% of assets, under the one-third limit.
Pass
Receivables
46.09%
Below 49%
Money owed to the company is 46.1% of assets, under the 49% limit.
Pass
Revenue purity
1.02%
Below 5%
Only 1.0% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Falls Short, in Plain English
ChipMOS TECHNOLOGIES INC.'s business is in a permissible area, but its interest-bearing debt is about 36% of the company, just over the ~33% line, so it does not pass on the financial screens.
Read as at 2026-11-07. It updates when the underlying figures move, and past reads are kept below.
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Today IMOS does not pass the screen. If new figures move it to a pass, we send you one short email with the before and after. Verdicts change rarely, so you may not hear from us for a long time.
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What the Numbers Say It Is Worth
The Fair Value Range
Our model only; no analyst estimate to cross-check.
Our analysis reads Overvalued vs our fair value, as of 6 Nov 2026: it trades above our $21.20 fair value estimate, 28.70% revenue growth.
Fair value range in USD, drawn from the 2026-11-06 screen. The gold marker is the market price at the same screen. The price runs 106.5% above the base estimate.
Where our models see it going: fair-value estimate $21.20, range not available, dated to the 2026-11-06 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Taiwan chip tester priced well beyond reason
Picture a backroom assembler in Hsinchu soldering chips together for pennies while investors pay a king's ransom for the shares. ChipMOS shows 25% revenue growth yet trades at 68 times forward earnings with a 3% profit margin and 3% return on equity. Our fair value sits at half the current price, so the market is betting on perfection that the thin returns simply do not support.
We pass because the business sits in a brutally cyclical corner of semiconductors where earnings peaks rarely last. A high multiple attached to such modest profitability leaves almost no room for the downturns that always arrive. Ethical screens clear, yet the valuation leaves no margin for the reality of the cycle.
Risks centre on exactly that swing in demand plus any slowdown in client orders from China or Japan. When earnings normalise the multiple will compress fast. Analysis, not advice.
Another profit measure, before interest, tax and non-cash costs: EBITDA.
The risks · The things to watch: it's a small-cap, so the share price can swing harder than the market; it already moves more than the market on an average day; its business and earnings are exposed to Taiwan and to currency swings.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
IMOS trades on Nasdaq (the company is based in Taiwan). As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-11-01Distribution$54.39-12.8%Entry 9
The analysis reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 12.8% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C. Technically it is holding around 20% above its long-term trend line with momentum reading oversold. Over the past year the shares are up 192%. Our forward projection puts the odds of a 10% gain over the next month near 38%.
The framework has shifted from markup to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 13.7% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C. Technically it is holding around 33% above its long-term trend line with momentum reading bearish. Over the past year the shares are up 192%. Our forward projection puts the odds of a 10% gain over the next month near 38%.
2026-10-18Markup$72.24+10.8%Entry 7
The analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 10.8% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it A, carrying a low risk profile. Technically it is holding around 109% above its long-term trend line with momentum reading bullish. Over the past year the shares are up 192%. Our forward projection puts the odds of a 10% gain over the next month near 38%.
2026-10-02Markup$65.18+13.3%Entry 6
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 13.3% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it A, carrying a low risk profile. Technically it is holding around 109% above its long-term trend line with momentum reading bullish. Over the past year the shares are up 192%. Our forward projection puts the odds of a 10% gain over the next month near 38%.
2026-09-02Markup$57.51-16.4%Entry 5
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 16.4% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it A, carrying a low risk profile. Technically it is holding around 109% above its long-term trend line with momentum reading bullish. Over the past year the shares are up 192%. Our forward projection puts the odds of a 10% gain over the next month near 38%.
2026-08-02Markup$68.81+11.1%Entry 4
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 11.1% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it A, carrying a low risk profile. Technically it is holding around 109% above its long-term trend line with momentum reading bullish. Over the past year the shares are up 192%. Our forward projection puts the odds of a 10% gain over the next month near 38%.
2026-07-18Markup$61.95+0.0%Entry 3
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it A, carrying a low risk profile. Technically it is holding around 109% above its long-term trend line with momentum reading bullish. Over the past year the shares are up 192%. Our forward projection puts the odds of a 10% gain over the next month near 38%.
2026-07-03Markup$61.95+0.0%Entry 2
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows excellent risk-adjusted returns.
2026-07-02Markup$61.95Entry 1
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows excellent risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
