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To: Sun Tzu who wrote (622)	3/26/1999 6:41:00 PM
From: David Rosenthal	Respond to of 10603

Sun Tzu, As regards to Cohu's movement today, I am not sure why. The volume was not particularly impressive. As to the case for Cohu I don't think it is as strong now as when I got in. I bought twice last year, the last at 16.:) The theory was that when chip activity picked up, back-end would be there first. And you don't need a new fab to increase output. You can add more test stations. 1. They are the best domestic test handler supplier and have customers like Intel, Micron and Motorola (not such a great customer these days). 2. They sell state of the art technology. There is an upgrade market for enterprise handlers. 3. They are conservative, well-managed and financially strong. 4. They pay a small dividend. Current negatives: 1. PC business is really deteriorating making capital expenditures questionable. 2. Teradyne has entered the test handler business. 3. Not a well-known or followed company. If it had followed the trend of the big caps in the semi-equips it would be up in the 40's now not in the lower twenties. I really don't like tech now but I have been holding. My thinking has been that Micron will give them some big orders as it continues to burn money. However, with things going South so fast, this may not happen. I feel like I am playing with fire here. Hope this helps, Dave