| | | Hi Johnny,
I've said for years that Cohu is the hardest stock to own in the marketplace.
I have a rounded full position and will watch it and see what I can swap it out for and build my dividend revenue stream.
I'm not real sure what they mean when they say it is call capped to prevent dilution?
I note large open interest in the November time frame predominantly in calls.
I do know the mNgement well enough to know they hate debt.
To sell Senior Notes for 200 million they have a purpose for it, or it would not have been done.
Some ideas:
They add an inhouse "out sourced automatic test" operation. If they want to keep the HBM (high bandwidth memory) chip testing up close to their chest, this might do it. If that is the deal, then my bet is they'll become a tester for AMD, and keep the new technology here in the USA.
They may bring some assembly back to the Poway facility, which had always been underutilized (California's high cost of living and labor).
On the other hand, it would be close to Oregon where Micron is situated. The recent announcement of Eclipse being chosen reference a leading Semi maker AND FOUDRY would suggest Intel and Nvidia using them for an OSAT, that would buy a lot of Eclipse testers (which have nice margins!
They've said in the past that tariffs were not significant. Cohu tried outsourcing manufacturing and the quality suffered.
Malasia and the Philipines have in the past been where the renewables consumption pieces get made. A lot was supposedly shipped to Malaka for assembly, but most of their installed service base is in Asia and China has the most.
Time will tell, but they have a plan I'm sure.
Senior convertible Notes often have an initial dip with a recovery happening soo after the announcement.
I took it as an opportune time finish up my position.
I was of the positive thought that their sale of the new Eclipse platform put them squarely in the AI demand cycle for their HBM. If Cohu has the designated test for AI HBM, they may just want to keep the entire footprint of a high growth testing operation.
If indeed they capture that, they may well be placing themselves squarely into and Merger and acquisition target. Thus the money to seize the exclusive testing of the specialized HBM that AI requires.
All conjecture at this time, but it has to be good for them to embrace debt.
That I'm sure of.
Q3 earnigns may well be more than interesting. Earnigns may be only 30 days away!
One thing for sure I DO KNOW: They always dip before a big run up occurs. I'm being patient and holding my position.
These guys have come to the party with a huge position:
| Check the appropriate box to designate the rule pursuant to which this Schedule is filed: | | Rule 13d-1(b) | | Rule 13d-1(c) | | Rule 13d-1(d) |
| 1 | Names of Reporting Persons
Victory Capital Management, Inc.
| | 2 | Check the appropriate box if a member of a Group (see instructions)
(a)
(b)
| | 3 | Sec Use Only | | 4 | Citizenship or Place of Organization
NEW YORK
| | Number of Shares Beneficially Owned by Each Reporting Person With: | | 5 | Sole Voting Power
4,131,717.00
| | 6 | Shared Voting Power
0.00
| | 7 | Sole Dispositive Power
4,158,817.00
| | 8 | Shared Dispositive Power
0.00
|
| | 9 | Aggregate Amount Beneficially Owned by Each Reporting Person
4,158,817.00
| | 10 | Check box if the aggregate amount in row (9) excludes certain shares (See Instructions)
| | 11 | Percent of class represented by amount in row (9)
8.94 %
| | 12 | Type of Reporting Person (See Instructions)
IA
|
Bob |
|
