Ring the Bell - When to sell semiconductors? Message Board

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Technology Stocks : Ring the Bell - When to sell semiconductors?

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To: Sarmad Y. Hermiz who wrote (7)	1/26/2004 10:26:45 PM
From: robert b furman	of 34

HI sARMAD, tHIS SECTOR has hge barriers to entry of all kinds. I can only refer to very small niche semiconductor testhandlers.I suspect that the front end equipment makers are even more so. Cohu has been around since 1941 - they paid cash forDelta Design in the eaely 80's.Delta's original expertise was building heating chambers that equally warmed chips up regardless of where they were in a heating chamber-this was necessary because computers ot hot and then chips failed- so a test was created to duplicate the real world. Cohu succeeded at this and had other cash cows that enabled them to buy Daymarc a competing gravity feed testhandler that had come to wealth building testhandler for Micron. Daymarc wanted to go public in a bad IPO time AND WAS INTRO'D TO COHU FOR A PURCHASE. At about the sametime Aseco wentpublic and attempted to compete with Cohu on a pick and place equipment and lost all of their IPO money on R&D.They never sold their first design-they werepurchased by MCTI for a pittance. MCTI is now under 2.50 and the other competitor Aetrium is all but under water as well. This is a game for SUPER CAPITALIZED FIRMS -the cycles kill all undercapitalized players in the down time. A company must not only be bulletproof to withstand the down cycles - but they must be debt free and willing to invest past retaied earnings into R&D to gin market share in the future. They are like the investorsof the stock - they reinvest in the face of fear.This understanding is essential.It requires faith and being good and capitalized. Few understand this unless they have walked the walk for 10-15 years. I hope thaT HELPS IT MAY WELL MAKE YOU RICH!! bOB pARDON THE TERRIBLE SPELLING AT A FRIENDS HOUSEON A SLOW AND DIFFERENT SYSTEM.gg

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