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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Bob Rudd who wrote (4630)	8/8/1998 9:35:00 PM
From: Mr. Sunshine	Respond to of 78673

I am new to this thread, and am impressed with what I have seen so far. One stock that is worth considering is COHU. They make semi-conductor test equipment, a segment that has been severely beaten down in the past few months. Here are the fundamentals: P/B = 1.4 P/S = 0.9 P/E = 7 COHU has no debt, conservative management, almost $6/share cash, and has fallen below 20 in the recent downturn. I bought this one two years ago at an average cost of 20 and sold half last December for 53 1/2. The company is stronger now than ever, and when the sector turns I am looking for it to trade near 60. This is a great growth and value stock in the high tech arena. All IMHO. Good investing to all, Steve

To: Bob Rudd who wrote (4630)	8/9/1998 11:38:00 AM
From: Bob Rudd	Read Replies (2) \| Respond to of 78673

AG mostly & NH, DE from Barrons: Share buybacks are the rage in Corporate America, but sometimes they are executed poorly. Take the case of AGCO, a leading maker of farm equipment. AGCO repurchased 3.5 million shares of its stock during May and June, or 6% of its stock outstanding. At the same time AGCO was buying back its shares, its business was worsening. AGCO ended up paying an average price of $25 a share for stock that now trades for 11 1/4 . AGCO's stock has fallen sharply in the wake of weak second-quarter profits and the company's downbeat outlook for the rest of 1998. Wall Street analysts have sharply cut their 1998 and 1999 profit estimates. AGCO is now expected to earn $2 a share in 1998 and 1999, down from earlier estimates of over $3 in both years. AGCO's management came under fire during a conference call after the share buyback and earnings were reported recently. Wall Street analysts couldn't understand why the company bought back so much stock at a time when its business was deteriorating. To make things worse, AGCO said that it was suspending its share-buyback program and that it will now use cash for debt paydown and acquisitions. For the same money it laid out to buy back 3.5 million shares, AGCO could now repurchase more than double that amount. The entire farm-equipment sector has been rocked lately. AGCO has lost half its value since late June. New Holland has fallen by 25%, to 15 5/8, while Case is off 33%, to 31 11/16. Industry leader Deere is off about 20% to 42 1/8 in the past five weeks. The Asian, African and Russian markets are weak, and low grain prices are hurting farmers in the U.S. and Europe, resulting in higher levels of discounting. That said, the sector could offer opportunity if current earnings projections are borne out because the stocks now trade at rock-bottom P/Es. AGCO changes hands at 5.5 times 1998 profits. New Holland and Case have P/Es of around six, and Deere has a multiple of under 10. AGCO trades at about its tangible book value.Share buybacks are the rage in Corporate America, but sometimes they are executed poorly. Take the case of AGCO, a leading maker of farm equipment. AGCO repurchased 3.5 million shares of its stock during May and June, or 6% of its stock outstanding. At the same time AGCO was buying back its shares, its business was worsening. AGCO ended up paying an average price of $25 a share for stock that now trades for 11 1/4 . AGCO's stock has fallen sharply in the wake of weak second-quarter profits and the company's downbeat outlook for the rest of 1998. Wall Street analysts have sharply cut their 1998 and 1999 profit estimates. AGCO is now expected to earn $2 a share in 1998 and 1999, down from earlier estimates of over $3 in both years. AGCO's management came under fire during a conference call after the share buyback and earnings were reported recently. Wall Street analysts couldn't understand why the company bought back so much stock at a time when its business was deteriorating. To make things worse, AGCO said that it was suspending its share-buyback program and that it will now use cash for debt paydown and acquisitions. For the same money it laid out to buy back 3.5 million shares, AGCO could now repurchase more than double that amount. The entire farm-equipment sector has been rocked lately. AGCO has lost half its value since late June. New Holland has fallen by 25%, to 15 5/8, while Case is off 33%, to 31 11/16. Industry leader Deere is off about 20% to 42 1/8 in the past five weeks. The Asian, African and Russian markets are weak, and low grain prices are hurting farmers in the U.S. and Europe, resulting in higher levels of discounting. That said, the sector could offer opportunity if current earnings projections are borne out because the stocks now trade at rock-bottom P/Es. AGCO changes hands at 5.5 times 1998 profits. New Holland and Case have P/Es of around six, and Deere has a multiple of under 10. AGCO trades at about its tangible book value.