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

To: Gottfried who wrote (1408)	9/11/1999 3:30:00 PM
From: KLINVESTOR	Read Replies (1) \| Respond to of 7825

Gottfried, Your second chart makes the argument that AMAT is a little ahead of itself right now vs. the orders although given the whole stock market is at very high multiples on a historical basis right now that is probably expected. Cohu seems more in line with historical pricing for the BTB/orders but using the same higher multiples argument it should be at a higher price now. Cohu is significantly smaller but within its segment of test handling equipment Cohu is also very dominant with no close competitors. I see in another post you mentioned something to the effect that bargain stocks quite often remain so. I think in the short term (short term defined as 1-3 years) that is true but over the longer term well managed companies trading at a discount are ultimately discovered. Large capitalized stocks have had a fabulous run for a number of years now. The tide should turn sometime in the not to distant future. Then the well managed smaller cap stocks will swap places with the larger caps on a multiple basis. In 1991 for example, small caps took off like a rocket and once it starts to happen it usually occurs very quickly. I think the next quarterly release should be very interesting for Cohu. Hopefully they beat estimates handily. Two other good comparisons are charting Cohu vs the back-end companies BTB although I don't currently have that data although I have seen it in some analyst reports. The other comparison is Cohu vs. TER. There Cohu looks very undervalued compared to historical pricing. Good luck.