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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: orkrious who wrote (47811)	6/10/2001 12:15:14 AM
From: Jerome	Read Replies (2) \| Respond to of 70976

why buy Teradyne Now Lets start with a chart of TER. siliconinvestor.com Keep in mind that my objectives are different from an investor that is a LTB&H. I plan to use TER as a covered call write. I would put a buy in at 42 1/2 and when that fills immediately write the July 45's. There has been a lot of discussion on this board about front end vs back end and who gets the new business first.My observation is that it does not make much difference. Some companies are investors favorites and some are on a perpetual hate list. TER is on the favorites list. A great deal of thread energy has been consumed trying to figure out what part of the cycle we are in. Its like driving around a major metropolis looking for a good parking spot. (time wasted). Its obvious to me that we are in a very nice trading range on a lot of these stocks for the next few months. What I would look for in a stock purchase at this point is a stock that is not likely to collapse right after you buy it. TER seems to have significant support around the 40 level. In times past we would all look for stocks that would appreciate near term. And stocks that went nowhere were considered dead money. Today we have a third concern, and that is the "great and unpredictable sell off" . Appreciation is nice, dead money (short term ) is OK but the unpredictable sell off just kills your portfolio. For every dollar you lose in a great sell off you need to make two somewhere else. Teradyne for my purposes is a good buy at the 40 to 42 range, given the current environment. Last year I got called out of TER at the 30, 35 and 40 strike. This is the best I can do for a Saturday night...... Regards, Jerome