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

To: Henry D who wrote (1389)	8/27/1999 1:45:00 PM
From: KLINVESTOR	Respond to of 7826

HenryD, I think Cohu's strengthening over the past few days may be a sign that investors are starting to look at some of the smaller semi-equips where real value still exists in this sector. ASYT being a smaller cap in the sector fits the bill also. In 1997 the same thing happened when the large caps did much better at first but the smaller cap semi-equips then went up pretty strongly also. I am very upbeat about the future btb numbers as the DRAM pricing strength has just taken place over the last month or so. Given that the DRAM equipment order rates have been very low when they ultimately start ordering new equipment it will make for a very strong sector. I think the semi industry was so bad last year that there will be some conservatism in this cycle of equipment purchasing. That might lead to a longer growth cycle. Whether we will see a pickup in the August order rates or in the next few months is hard to guess but the current order rates are good and Cohu is virtually assured of a great 3rd quarter. I have not spent that much time looking around the new SI site so I am not sure what happened to the historical data. I do like the feature which allows one to read the next 10 messages at once. I live overseas so I do not have access to IBD so I don't follow their sector guidance but fundamentally there should not be a big difference between the semi-makers and the semi-equip companies. I guess generally the semi-makers should take off before the equipment companies do. I am still very optomistic about Cohu's prospects and if the company Senior Management could get the company some additional analyst coverage it would be very helpful. Additionally, they need to find a better use for all of the excess cash they have. It is unfortunate they did not buyback a couple million shares when it dropped to $15 last September. They could be doing a 3-1 stock split now instead of a 2-1 and the EPS would be much higher. Good luck.