Hi Tweets,
For some reason the after hours last print is now $29.00 up another .96 on top of the closing price of $28.04, which was up $1.78.
Let's hope it holds.
Cohu is having a virtual "Investor Presentation" which features all of its key project managers. Usually an excellent show regarding their expertise.
Cohu has it's handle on top of the test procedure on every chip made in the world. 20% of all total chips are classified as wafer scale chip testing ( think small chips made for cellular handsets). This category is a bit nebulous. Cohu has a position in this testing s well. Brooks Automation calls their contribution to testing as Advanced testing.
It is not well defined, but it is a growing area.
As a SWAG my guess would be it represents 50 to 75 million in testing.
Cohu venture into testing is quickly growing and the margins of testers is higher than the margin of test handlers.
Although small compared tp KLAC (metrology inspection) and TER (testing giant in both memory and logic), Cohu is making good inroads into this higher margin business.
Someday ATE, TER, or KLAC, will realize Cohu is nibbling at their growth.
A tender will be made for Cohu and it will have an excellent shot at becoming a bidding war.
If that doesn't happen Cohu is on a long journey to becoming a small AMAT, LRCS or KLAC in that their only global service footprint in their sectors of expertise will provide enough service "consumable revenue" that continuous profitability with in the semi cycles of peaks and troughs will be achieved.
Being debt free and hundreds of millions in cash, will enable them to buy back a lot of stock, or become a juicy merger and acquisition target.
I'd take .5 shares of AMAT($111.86 /2 = $ 55.93) for a share of Cohu. That would be a bit above Cohu's ATH of $51.86 and we'd be getting a dividend of .96 cents per share of Amat per year (.48 cent per Cohu share - which would be 2 times the puny 24 cent dividend they suspended in 2020.
I'd love to get a pay raise next year. As a stockholder of Cohu for many decades, we have been forgotten by current management. They have however remembered themselves with adding to their income, options so plentiful, they now have to buy back shares to prevent showing the dilution.
With disgust , it hurts to say they used to be a very pro stockholder company.
Time to attend a stockholder meeting!
A merger would add growth to a company that was stockholder friendly!
Light the fuse, TWEETS LIGHT THE FUSE!
Bob |
