Hi Buddy,
They're hanging in there with some high cotton.INTC, SEBL,SUNW and little ole Cohu.
It seems to me that management would be wanting to do another 2 for 1 stock split.
Past tops after 2 for 1 splits have been at least in the 36 to 45 range - so 90 comes out about right. You know what they say about stocks that hit 90 - they always go to 100.I think a split would occur before that.I did a study on Cohu a long time back, on two for one splits and If I recall correctly,management will do a split if they see their earnings approaching $3.00 per share - presplit.
Management is very conservative,yet I think they would like to get more shares outstanding to enhance liquidity.Pe ranges at tops have been 20-30.With earnings being forecasted into the 2.00 - 3.00 dollar range(with backlogs growing) they seem to prefer a 2 for one split.I think they are already authorized to increase the number of shares to accomodate another 2 for 1 split.
The poison pill they implemented was set at 90,but a 2 for 1 split cuts that to 45 - so that is the bare minimum.
Frankly I'm surprised Allen is leaving - I wonder if Cohu isn't being negotiated for tender.He is young and vice president.He is young (50) and worked there since 1995 - been getting and exercising options(realized over a million dollars in 2000) and gets paid conservatively.He is a big fish in a high quality small pond that is bullet proof and has a long run great future.Why would a guy walk on a great company that was making him a MILLION PLUS ?????
Brown who has been there since 1980 is retiring - that I understand. Poor guy works there all his life and builds the worlds best cctv's only to watch this Delta Design blow by his work with an accelerated growth factor that is exponential.
Strange - if I was Amat or A and wanted to buy Cohu - I'd sell off Fisher Research Labs ,Broadcast Microwave Services, and the Camera division.Then add to that the sizable horde of cash and Pay big bucks for Delta Design.Then you go buy Schlumberger's test division that has been on the block for a while and you could be the Advantest of the west.
You can check this thread for years now - I've always thought that makes sense, cause that is the global business model of Advantest(they make both testhandlers and testers).
This year the rumor was Amat wanted to get into the back end.That would be one way of doing it.But then Klic hit a new high too and that would be the other way to do it.Heck maybe they'll all go that way.
If they all consolidated ,that might be why Ter is collecting their cash horde - could be we'd be blessed with a bidding war.Man I've got ot quit drinking so much coffee in the morning I'm getting carried away.
But Hey, a guy's got to have a dream. <VBG>
I think Monday we squeeze the heck out of the shorts.This rally has been strong - with the NAZ, S&P,DOW,and IBD mutual fund index all over the 200 day MA - coupled with a record short position.It could get volatile fast.
Our stock market recovery could be just as fast as it was going down.
At any rate one thing for sure Cohu is lookin good and I'm waiting for the breakout to aggressively buy the rocket up.
Bob
Sure do appreciate your input on Cohu on this thread.I really like this company and several approaches to analyze this company is a good thing. |
