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

To: robert b furman who wrote (6615)	11/16/2018 9:59:47 AM
From: robert b furman	Read Replies (1) \| Respond to of 7827

Here's a SEEKING ALPHA transcript of Martin Anstice, CEO of Lam Research. During his interview, he talks about how he calculates the guidance for the next quarter. A component of that is servicing the installed owner base. Another component of that is Capex - the component that can change depending on who is buying and that depends on a very strict investment discipline. At any rate - here also Martin points out the steadiness of serving the existing owner base of installed equipment from past sales to customers. And we don't have a crystal ball to tell you what WFE is going to be in 2021. But if it's approximately the same as it is right now, right now towards the first half of this year then we have this opportunity for $3 billion reference of kind of growth. And some part of the revenues for the company are correlated to WFE and there is a piece that isn't. And that's why we spent more time talking about this installed base business. And in the last earnings call, I hopefully was clear in talking about how much the baseline of the company has changed. I think at the end of the 2014 we had something like 35,000 or 36,000 process chambers in the installed base and today it's about 55,000 process chambers. So that's the platform of opportunity. And if wafers fab goes up or down it doesn’t change that opportunity. The only thing that changes that opportunity is the utilization of our fab and in today's world fab utilization is generally extremely good. Cohu has an installed owner base of 11,500 test handlers - 12,000. I wonder what the number of installed test handlers XCRA had? At some point (I think we are there now) it becomes big enough that it no longer has cycles it just becomes a steady and reliable service business. A business that pays the daily overhead and takes a certain degree of cyclicity out of your business. This will be the endearing charactreistic of the Cohu / XCRA acquisition imo. Cohu's recent dip is providing an excellent opportunity to "ADD TO" at very reasonable prices. Enjoy the discount out there!! Bob Bob