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

To: bearshark who wrote (7734)	8/7/2024 3:22:05 AM
From: robert b furman	Read Replies (1) \| Respond to of 7822

Hi Bear, Cohu has always been cyclical. It used to be a PC became a high growth product the cycles changed quickly. The laptops changed the pattern. Now it is data centers and AI. It always rolls to the newer products. I'm thinking that new systems will always be the max profits and the chip act will bring a large wave of additional orders in the US. I' think during that greater profitability a global excess capcacity is a legit concern. When we see the ramp of new systems hit the order bank, it will be time to exit the position. Recurring revenue at 66 % really shows a very eak new sustem environment. I suspect if you had an OSAT test fab in other parts of the world and you knew that the US was bringing production on shore, youd be hesitant to add testing capacity EXCEPT in the US. I think that is what's going on now - NOT MUCH. Recurring business and new products (think metrology and RF testing) may be a small plus business. Auto has been strong for long and ADAS is a growth area as all new cars refreshes are getting the ADAS systems built into the next refresh all the way down to lower priced cars. I'm not sure how much of the auto strength relied on EV's. Certainly they used more electronic chips than ICE's do. EV is going to be a niche, but not the BIG game changer thaty've been hyped up to be. With reshoring or near shoring (Mexico is booming) the industrial sector may well be the new growth area. I think right now, they're building infrastructure, and the equipment part is yet to hit. Once the ramp of production begins Cohu will benefit for at least 4 quarters. In between they serve a global footprint and need to get lean. Amkor's plan to build the largest OSAT in the US, is what we need to see happen with others. Let's hope the buybacks reduce the outstanding shares in between. Bob