UMS Holdings

[NTL]

http://www.singaporelaw.sg/sglaw/laws-of...chapter-17

I found that old link. Section 6 is the interesting one. They would clearly breach the law if they traded based on a material non public information

Why will AMAT refusal to renew the contract be a material non public information? Anyway, it's still 3yrs before the contract ends, isn't it a little too early to issue any official note regarding the renewal?

Does AMAT's sales constitute as insider trading? They are just a major shareholder, not a director or employee of UMS.

[yenyenpark]

i think we are speculating now.. well, we just gather whatever information we got here, and form our own opinion.. if you are really holding too big chunk of UMS and feel not comfortable now, probably it's time to pare down some stake..

[heifien91]

Why pare down some stake at this point in time when markets are fearful? You're only on the losing end..? Of course the argument can go that its to reduce short term losses, however, to me when fundamentals of the company are still intact we should just calm ourselves and wait for the dust to settle before making any decisions (buy/sell). Any decisions made now would be mostly ruled by emotions.

(vested)

[ethys]

http://www.singaporelaw.sg/sglaw/laws-of...chapter-17

I found that old link. Section 6 is the interesting one. They would clearly breach the law if they traded based on a material non public information

Why will AMAT refusal to renew the contract be a material non public information? Anyway, it's still 3yrs before the contract ends, isn't it a little too early to issue any official note regarding the renewal?

Does AMAT's sales constitute as insider trading? They are just a major shareholder, not a director or employee of UMS.

AMAT refusal to renew the contract is definitely a material non public information since they have not made any announcement on this. What defines a material non public information is an information that if disseminated to the market participants would have a material impact on the share price of this company. I can say without taking much risk that if they did announce that AMAT was not renewing their contract with UMS then UMS share price would have fell a lot so there is no doubt this is a material non public information.
Having a material non public information is obviously not illegal by itself, that's even expected when you are a big client but trading based on this information would be illegal unless they disseminate this information before they trade UMS.
It doesn't matter that you are a UMS employee or not. Actually if by pure coincidence you were a perfect stranger and were in a lift with Andy who
were saying to another director that AMAT contract would not be renewed then even tho you have no link with UMS you have a material non public information and trading based on this would be illegal. Obviously this one would be very hard to prove

[Boon]

Rather than taking 2 years for UMS to acquire the technology know how, it probably take about 2 years for UMS supplied parts and Endura system to pass the clean room qualification criteria as the Enduta system and the parts shipped from UMS had to be proven to be not generating foreign particles that are going to end up as killer defects on customers' wafers. The testing system are copied direct from AMAT plants and any engineer trained by AMAT can easily perform the assembly and testing operations. AMAT probably has other vendors supplying the same Endura components and consumables so those parts are already qualified. What I'm saying is that any other existing vendor that's already supplying the parts can easily carry out the assembly and testing operations on the Endura. There are many Taiwanese and Korean companies that are capable of performing such operations. These vendors purchased 2nd hand semiconductor systems to refurb and final test these tools to re sell them to the wafer fabs.

I guess that UMS is supplying parts like the Endura mainframe and chambers as it's not cost effective to ship them from elsewhere. UMS probably also supply other components like skit valves and other moving parts made of aluminum as UMS has the expertise to machine these parts. That explains why their revenue consisted not only of assembly and testing services but also Endura parts and consumables.

In summary, what I'm saying is that the entry barrier is low for existing competitors in the Semicon industry, especially when the IP and specs of the manufactured parts belong to AMAT. So why does AMAT gives most of the orders to UMS in the past and not split the orders among different vendors? Perhaps it's because of Andy's relationship with AMAT senior management, or AMAT does not trust the Taiwanese and Koreans (there are OEM parts available from Korean and Taiwanese suppliers). Perhaps that's why UMS is enjoying a "loyalty margin".

UMS has made a representation that the barrier of entry is HIGH

Our Edge
3. Entrenched Relationship with Top Global Customers
•Serves a select group of leading global corporations (eg, Applied Materials Inc, Schlumberger)
•Deep & continuous collaborative effort from R&D to manufacturing of components to subassembly to surface finishing
•High barrier of entry for competitors
•Management criteria for customer acquisition:
•Earnings accretive
•Healthy and sustainable margin

http://www.set.or.th/th/asean_exchanges/..._ASEAN.pdf

(vested)

[mslee888]

I agree we should try to control our emotions even though it seems painful at this moment. Rash decision to add or cut may lead to regrets later.

Let the dust settle and also the price to stabilise before making a buy/sell decision.

based on facts, the yield is very good at this moment. The rest are just speculative views...IMO..

[valuebuddies]

In fact all started from AMAT's selling, it could be Andy felt nervous and throw big chunk of his shares. As I said earlier Andy tend to sell regardless good or bad time, so to me just his "panic selling" action. Anyone pick up more when price cheap?

[ vested and do nothing ]

[ethys]

In fact all started from AMAT's selling, it could be Andy felt nervous and throw big chunk of his shares. As I said earlier Andy tend to sell regardless good or bad time, so to me just his "panic selling" action. Anyone pick up more when price cheap?

[ vested and do nothing ]

yep bought 250 more lots yesterday @0.64. I never buy at the lowest nor sell at the highest and this has been confirmed one more time
But it's Ok still optimistic on long term. Meanwhile I will still get the dividends. Having said that I would lie to say that I am not a bit worry at the moment when I see the huge volume being traded even today so u might be right Andy possibly selling more stocks. We will see

[yenyenpark]

Why pare down some stake at this point in time when markets are fearful? You're only on the losing end..? Of course the argument can go that its to reduce short term losses, however, to me when fundamentals of the company are still intact we should just calm ourselves and wait for the dust to settle before making any decisions (buy/sell). Any decisions made now would be mostly ruled by emotions.

(vested)

if one feel uncomfortable, high chance he had over-exposed.. that's why pare down some to better manage his/her portfolio..

of course, those who are going long long term, this may be the rare opportunities around..

[Stephentoh]

Yea i'm add more lots @ 54cents. Business fundamentals are there, the frantic sale after bonus and sales by AMAS & Andy may just create an opportunity to enter at this current price,personally i dont see why the value now is not attractive. But the outlook for next year onward will be of concern, we know that its a cylincal coy. Excerise with cautious buddies.