Cherry Corporation (NASD: CHERA and CHERB) is an electronic company that includes the Cherry Semiconductor Unit. Cherry is about 1/3 semiconductor (power and analog device, 6" fab in R.I.), 1/3 automotive switches and 1/3 computer devices (switches and keyboards). It does about $1/2 billion in sales with PE of about 10. The stock is about $16 and book value $13. It is growing quite fast, though profits slipped 2 years ago, but a record quarter just ended. Though the company is small, Cherry is a leader in their markets (automotive especially) and is a global company (overseas plants and sales). Comparable companies (competitors) are AMP, Siliconix, Linear Devices and Analog Devices.
I believe the market is under estimating the company's value, especially relating to the fast growth of the semiconductor business.
The Cherry family owns about 50% of the stock, non-family managers 5%, Fidelity 10% and Heartland Mutual Fund 10% (all ish)...about 12M shares, 3M float.
A great CHICKEN and VALUE way to play the semiconductor/automotive electronic business!!! Any thoughts or comments!?!?!?! |
