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Technology Stocks : Agilent Technologies (A) -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (562)	7/19/2005 11:24:53 AM
From: robert b furman	Read Replies (1) \| Respond to of 620

Hi Richardred, Exactly.The test area has been my favorite for almost 20 years now. The front end is so complex and changing. When the next chip gets designed - it doesn't matter if it becomes as popular as the Ipod or a flop. IT STILL NEEDS A TESTHANDLER BEFORE the first or the millionth can be sold. Also as we see 225 % more chips off the 300mm vs 200 mmm and more as die shrinks continue,the numbers of chips needing to be tested almost grows exponentially. This creates almost exponential demand for testhandlers that have not made the same utilization "jump" that comes with 300 mm. Last but not least,as smaller linewidths and test powers get maximized it pushes more types of chips into the realm of "needing the cooling that "ATC" provides. All of these factors put an increased "demand" on Delta's highest margin product. I think it was "exceptional that Donahue subtly mentioned capacity expansion - that means Summit testhandlers and or more Edge orders - a new product that has gained market share in the Asian subcontract test houses ( a never before market to Delta). When Cohu gets all cylinders going it has the capability of earnings 75-90 cents per quarter,on 250 - 300 million annulized revenue. On a PE of 20 that goes up to the past all time high and my bet is we'll see a dividend increase and 2 for 1 split at the next BOD meeting in 06. Bob