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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (1615)	7/11/2014 9:33:01 AM
From: robert b furman	1 Recommendation Recommended By Kirk © Read Replies (1) \| Respond to of 26768

Cohu announces on July 30 th. They recently sold off their camera division. Upon announcing that, they guided up for revenue while at the Needham growth and the CEO summit this month. Management is very conservative and to guide up is out of the norm. They are just now benefitting from two major acquisitions ( about 120 million of their cash horde ) over the last 4 years. More importantly they have gained a low cost manufacturing facility in Malaaca Malaysia.Transition of all manufacturing is 50 % over with the german Rasco unit taking place H2 2014 = 100,000 write off each quarter vs 250 last quarter for the California move out to Malaaca. They had tried outsourcing but the quality did not meet their exacting standards (competitive moat?) Cohu has not really risen much and historically lags the bigger tier semi equipment cos. You might give them a look - I think they will have a nice surprise with eps. Note with the acquisitions they have some impaired intangibles.This reduces the EPS but maximizes cash growth. Their stated tax rate for 2014 is 10-15 percent - should build cash quickly. The other stock that has not moved much and has a fortress balance sheet is Brooks - their life sciences is just now becoming profiyable. Bob