Absolutely classic stock price down cycle.
Reported results are fantastic, forward outlook is better, and stock price has already dropped significantly from the cycle peak. Happens every time. The timing varies slightly, and the reasons to trigger the decline differ, but the result is always the same. Maybe the report gives the stock a bounce tomorrow, maybe not, but if it does jump, I bet it drops back quickly. That's the reality of the environment we're in.
The over sign is the rate of growth of increase in sales and earnings will be declining.
Bob, you got your ~$75 million sales Q as predicted, but the stock is ~$12 not $30, or $40, or $50, or $60.
I've got a few smaller positions, most with in-the-money covered calls sold on stocks that are very cheap on a price to balance sheet basis. If the stocks go up or stay flat or go down slightly I make a reasonable return (typically about 3% per month are the premiums I look for). If there's a big decline I'm at least partially hedged and I've got funds available to buy the bargains. I've been completely off margin for about 3 months.
Good luck COHU'ers. Nothing against this company, it's doing good business now, but I've got to play by the rules that the sector and market uses. I have no doubt I'll be back. COHU has been in and out of my portfolio for at least 12 years. |
