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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Mason Barge who wrote (4891)	2/19/1998 3:35:00 PM
From: Ramsey Su	Respond to of 10921

Mason, that was very interesting. If you have the data, how about making the same comparison to the 1997 lows? Kind of cup half empty or half full analysis. Ramsey

To: Mason Barge who wrote (4891)	2/20/1998 10:03:00 AM
From: KLINVESTOR	Respond to of 10921

Mason, I liked your comparison of current prices versus 1997 peak prices for various semi-equip stocks. It demonstrates that the test related companies have rebounded much stronger than the front-end companies as TER and COHU are within 20% or so of their 1997 highs. I personally think it is a demonstration that many of the front-end companies got well beyond their reasonable valuations late last year whereas as the test related companies like COHU were and still remain very undervalued. COHU earned $2.93 last year and is projected to make $3.44 this year versus a current stock price of $45.75. This still represents a significant discount from the average semi-equip PE ratio and the same is true of TER although not quite as significant a discount. I believe this trend should continue as there are very few companies that have the historical growth rates, excellent balance sheet, and future earnings growth potential that COHU and TER have. The cost benefit of increased testing related investments to semi-companies appears to be a trend which will benefit these back-end companies equipment makers in the immediate future. Good luck to all.