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Technology Stocks : Cohu, Inc. (COHU)
COHU 14.41+1.1%Oct 14 4:00 PM EDT

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To: bobbyl who wrote (6647)3/6/2019 3:22:33 PM
From: robert b furman  Read Replies (1) of 6731
Hi Bobbyl,

Cohu's dilution of stock has grown , but still considered to be conservative.

They have continued the dividend, but the last raise was before Schwann retired. Donahue & Mueller have never incresed the dividend.

That being said ,they have embarked on many effective mergers - all small, and some saved their bacon from big losses during trough business cycles.

They have now rolled up their niche market consolidation.

I'd be very surprised if they increased their dividend while still having debt.

Once the debt is eliminated, I'd be expecting some dividend increases.

Lam has been the best example of this. Amat and Ter to a lesser degree.

They have pulled off a great merger and it is time for the benefits to begin to show through.

I suspect a two year to three year time period for debt elimination.

It seems Cohu likes to build cash near the 150 million level so that may be a 2-4 year event.

If/when management sees the debt elimination, I expect they'll increase the dividend, as that is the best sure fired way to boost the stock's price.

When Cohu grows their revenue from 350 - 400 million to 1 billion - it will be one fine dividend paying stock .

My WAG is 2-4 years out and well worth grabbing more stock if it falters here, as management will no doubt discuss the need for debt reduction during the next webcast.

If Cohu drops after earnings, I'll be selling $15.00 puts hoping to get them assigned and sell more 12.50's and 10.00's to help pay for the 15.00's.

Times are getting better!

Time to be aggressive and accumulate more shares. imo

It may well be our last opportunity to but Cohu in the teens!

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