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Technology Stocks : Cohu, Inc. (COHU) -- Ignore unavailable to you. Want to Upgrade?

To: KLINVESTOR who wrote (1343)	7/23/1999 2:19:00 PM
From: geoffrey Wren	Respond to of 7827

Klinvestor: Re: COHU & TER. I own COHU; have for a long time. Never owned TER. There are a number of variables in the analysis of the equipment stocks. I don't assume that companies that are close on the assembly line (or integrated together on the assembly line) will show great correlation in stock prices. You have to ask about profit margins, and the ability to weather downturns successfully (largely a function of management I think; as well as direct competition that brings down prices). COHU and TER can weather downturns. But, consider CRBP, a stock I follow, that provides ATE equipment: "Cerprobe Corp. offers solutions for semiconductor test integration and is a manufacturer of probe cards, automatic test equipment interface assemblies and ATE test boards." When there's a downturn, CRPB bleeds buckets of blood. I think TER is overvalued now. I think so many of the large techs are overvalued now. CSCO, TER, AMAT. Just my opinion. Obviously, it's been the wrong opinion to have over the past few years. Cohu just keeps on chugging. Heaven help us, though, if Intel ever decides to drop COHU. COHU is not very glamorous, but it profits by participating in a growth industry. Two others I own for similar reasons are CHNL (sells enclosures, etc., to telephone and cable companies), and CNF (largest Less-than-Truckload shipper in the U.S.; I figure this will grow with the growth of Business to business transactions via the internet). I hear UPS is going to go public. I'd be interested in that too, but I suspect it will be quite expensive. Best regards, Geoff Wren