Cohu, Inc. (COHU) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Cohu, Inc. (COHU)

COHU 24.98

-0.6%

Dec 5 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: bobbyl who wrote (6594)	10/10/2018 7:20:51 PM
From: robert b furman	Read Replies (1) of 7827

Hi bobbyl, Cool job - for 25 years I owned and bought cars for my dealership in Cleveland Tx. Many of them from Big H, a Mannheim auto auction. Tsla is toast in my opinion. The factory has to fix all those defects - they got problems. The luxury market is fickle whatever is cool - the rich will buy. Tsla is a luxury model and their first car is old in the teeth. Now about Cohu. They've been on a tear - here's the chart 3 year weekly. screencast.com - from 10.01 to 27.83 - a 17.83 run up. In early November Cohu will report Q3 and give guidance, now that the Xcera merger is completed. Now there will be large write offs for impaired intangibles , severance pay,reorganization expenses etc. Those will all be future write off's that makes Cohu look like it is not making money - but they will maximize cash flow and allow Cohu to pay off their 350 million debt they took on for buying out Xccerra. Xcerra was about to be bought by a government funded hedge fund of the people's country of China. Cohu protested the purchase by writing a "white paper" to the The Committee on Foreign Investment in the United States (CFIUS). CFIUS decided the sale should be canceled. That put Xcera on the block and Cohu bery unlike their entire history saw such a powerful opportunity to merge and become the number on back end test company in the world. Jeffrey Jones (Cohu's CFO) is a s good as they get. He'll make sure every penny will be written off and those tax saved funds will go to pay down the debt. Cohu a less than 400 million company bought Xcra a 480 million dollar company. Cohus has 155 million in cash and Xcra has 190 million in cash. Cohu's margins are 39-40 % and Xcera 's margins are 42 %. So Cohu took advantage of buying a bigger company with more cash and higher margins. This never could have been achieved with CFIUS putting the kabash on the Chinese deal. If the technology or Xcera and Cohu went to China - they would have the largest back end company in the world. The little trick that China pulled with sunmicro adding the little micro chip to AMZN's and AAPL's server banks will be a new boost to back end inspection (from American Companies i.e. Cohu). Now the first brokerage to come up with estimated earnings puts Cohu's future earnings at 2.77 (nongaap). What company sells for $15.00 bucks while they earn $2.77 - that's a PE of 5.4 % ? Time will prove Louis Mueller and Jeffrey Jones to have been brilliantly opportunistic by making this merger. The best part is they own a lot of stock themselves. When making the purchase for the first time since I've owned Cohu (my first buy was in 1978) they have taken on debt. They took on debt because they know they can pay it off and DID NOT WANT TO Dilute the stock holders of Cohu by issuing a lot of stock in concluding the merger. I've owned this stock a long time and it is a hard stock to own - it will scare you and make you want to sell it. I have just been hard headed and always held on to my shares - except fo two time when I sold out completely. This stock in the next 24 months has been indicated to take 24 million out of cost after they shut down redundant offices and transfer their manufacturing to Cohu's phillipines and indonesian manufacturing facilities. There is another 20 million savings over the next 3-5 years. That;s fully a 95 cent per share saving over the next 3-5 years. Right now their sale of consumables (sale of things that wear out) = 48% of their annual sales - these items have margins in the mid 60's. The combined company is now the number one seller of consumables and the only maker that has a global sales organization. t If you are speculating - it is still a good play. But if you want to inivest in a company that has just rolled up the market to testing every integrated circuit made in the world - then you buy with cash as much Cohu as you can afford to. Let this sleeper work and grow to great profitability. They have a wonderful track record of very conservatively taking care of business. This is a great 3-5 year investment and I think when they give guidance next month the rest of the world will say this is a 30 dollar stock and in 5 years it will hit 50-60. JMHO Do your oen Due diligence, but these guys have pulled off a great merger. Go back and look at KLA - Tencor when they merged of Lam and Novellus when they merged. Like in those two examples - the two biggest player that competed with eachother decided to merge and hold their margins high vs compete and beat eachother up. Cohu has just accomplished the same thing. It will take time. This is an easy double to triple looking out 2-3 years. Hope that helps. Bob Hold with Confidence !! Don't buy TSLA or their innovative cars. All JMHO!

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next