Cary,
Always nice to hear from you, and I certainly do respect
your opinion. I do believe though that COHU is undervalued
relative to the sector.
Please allow me to make a few points:
RE "Teradyne is the acknowledged leader in testing".
Why, because they are the biggest?
What good is being the biggest, if a smaller company
has a better growth rate.
I compare everything on a per share basis.
If one compares COHU to TER on a per share basis,
level of debt, cash per share, sales per share, earnings
per share, the ALL IMPORTANT growth rate per share,
Book to bill, whatever you would like to look at, COHU is
better.
They are both in the same sub-sector, they both benefit
from the same improving fundamentals of the sector, both
have proven that they are executing very well this cycle,
and they have both tracked each other very closely in past
cycles. If you look at the 95 peak or the 96 lows or
the 97 peak or the 98 lows, they are in tandem. TER
has outperformed significantly this cycle up leg.
www3.techstocks.com
COHU is better on a per share basis and has proven in the
past to track TER.
I guess maybe other than trying to make my point of why
COHU should be up to TER, you could tell me why
COHU deserves half the valuation ratios of TER, especially
on a future P/E basis when COHU's numbers are better and
they are in the same sub-sector.
This isn't apples and oranges, maybe macintosh apples
and delicious apples admittedly..........
Thanks, Eric. |
