TER
Teradyne Inc.
Industrial/Transportation, Event Driven/Special Sit
08/22/2014
Presented
| Date | 08/19/2014 |
| Price | $19.56 |
| Market Cap | $4.00B |
| Ent Value | $3.26B |
| P/E Ratio | 52.57x |
| Book Value | $9.60 |
| Div Yield | 1.2% |
| Shares O/S | 204.68M |
| Ave Daily Vol | 2,300,000 |
| Short Int | 11.39% |
Current
| Price | $127.36 |
| Market Cap | $20.78B |
| Teradyne, Inc. provides automatic test equipment worldwide. It operates in three segments: Semiconductor Test, Wireless Test, and System Test. The Semiconductor Test segment designs, manufactures, sells, and supports semiconductor test products and services for wafer level and device package testing in automotive, industrial, communications, consumer, computer and electronic game applications, and others. This segment offers FLEX test platform systems; Magnum test platform that tests memory devices, such as flash memory and dynamic random access memory; and ETS platform for use by semiconductor manufacturers, and assembly and test subcontractors in the low pin count analog/mixed signal discrete markets. This segment serves integrated device manufacturers (IDMs) that integrate the fabrication of silicon wafers into their business; fabless companies, which outsource the manufacturing of silicon wafers; foundries that cater to the processing and manufacturing of silicon wafers; and outsourced semiconductor assembly and test providers, which offer test and assembly services for the final packaged devices to fabless companies and IDMs. The Wireless Test segment designs, develops, and supports wireless test equipment for developing and manufacturing wireless devices, including smart phones, tablets, notebooks/laptops, personal computer peripherals, and other Wi-Fi, Bluetooth, and cellular enabled devices. This segment offers solution for testing GSM, EDGE, W-CDMA, HSPA+, cdma2000, and LTE technologies for calibration and verification of smartphones, tablets, and embedded cellular modules; a range of test equipment for connectivity testing; and supplies modular wireless test instruments. The Systems Test Group segment offers military/aerospace test instrumentation and systems; storage test systems; circuit-board test for electronics manufacturers; and inspection systems. Teradyne, Inc. was founded in 1960 and is headquartered in North Reading, Massachusetts. |
Publicly traded companies mentioned herein: Advantest Corp (6857 JP), Teradyne Inc (TER)
Highlights
Since January, 2012 shares of Teradyne (TER) have underperformed the S&P 500 by ~10% (only recently did shares surpass the 2011 high), and results have largely disappointed shareholders. The company is carrying $1.1 billion of cash (roughly 27% of its market cap) and no debt on its balance sheet, which is “extremely inefficient.” The presenter is long shares of TER and explained his bullish view as follows:
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