Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Jerome who wrote (1538)	10/17/1999 4:40:00 PM
From: KLINVESTOR	Read Replies (2) \| Respond to of 7827

Jerome, I think it is good to keep reinforcing the issue of the need for additional analyst coverage for the company and an email to IR on the matter never hurts. In this regard though they have heard this message many times before. In early 1998 they were successful at getting a couple more analysts with earnings estimates than they currently have but they have since loss the momentum in this regard. I wrote the management at the time and even have a letter from the previous Chairmen of the Board on the matter. In the letter he made the point that Cohu has a difficult time attracting analyst coverage since most analysts work for investment banking firms and primarily cover companies that their firms do equity and debt offerings for. In Cohu's case they have been around for a while and have plenty of cash and have not issued stock in a long time. Therefore, few investment banking firms are motivated to cover Cohu since they will not be likely clients. Having said all of that though I think the company has been far to passive in this regard. They really need aggressively go after additional analyst coverage. It serves nobody any good for a company to continually trade at a significant discount to the market. If Cohu did that they would be much less likely to be considered a potential takeover target. It is when companies allow themselves to be undervalued compared to their pier group that generates interest in the company as an acquistion target. I presume Cohu would like to stay independent and they should seek to have their stock trade in the same value range as other semi-equips to avoid this risk. Good luck.