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

To: w0z who wrote (1722)	1/22/2000 7:33:00 AM
From: KLINVESTOR	Respond to of 7822

Bill, <<<I'll wager that COHU has greater market share in its segment than TER does in test (HWP/A and SLB are the other major domestic players). They are both in the back-end segment of semi-equipment suppliers, but COHU handlers are going with all of the big 3 test suppliers mentioned above. Just because handlers may not be as "sexy" as testers doesn't really matter IMHO...I look at profit margins, market shares and growth rates...COHU has handily beaten TER in these areas the past few quarters. >>> I absolutely agree with your point on Cohu having the most dominant positions in handlers and in effect being a stronger player than TER relative to their market niche. That is the great thing about the semi-equip business. There are quite a few number one suppliers in their respective niches to choose from. Everyone wants to buy AMAT and they represent the biggest equipment maker by a mile and they dominate several niches. Having said that though there are equipment makers trading at far lower valuations which dominate their niche and therefore command premium profit margins. That is the key. Cohu remained profitable even in the terrible year of 1998 and they will earn far more than anyone expects this year. The earnings release should give us a good indication. Good luck.