Teradyne is known (by a relatively few) as a manufacturer of test equipment for the "chip" market. Even so, most do not know Teradyne to even that extent. What makes it more enigmatic is that many of us do not know what the "chip market" is! There is even a difference of opinions among those in the chip market!
Compounding this is the fact that most who own TER do not even know .... "how much each product costs." Nor do we have any sense of how many products are being sold ... and the effects on revenues.
For example, yesterday's announcement re: the Boeing replacement of their ATE with new Teradyne 9100 series device. When I discussed this with my partners (locally) they said ... "sounds great, Boeing buying an expensive test machine from Teradyne." Not one person noticed the effects of the switch on the many avionics test centers spread among air bases worldwide! There was an implied idea that ONE machine would be bought ... and all avionics would be tested on that one machine. For anyone who has been in the military, such a concept is strange. The C-17s are based on many aprons, in many parts of the world. Today, in my small town, I can see one or two here. When I taught at the AFB, I would see several being serviced on a typical day. WOuld it not be the case that we would update our avionics with the series 9100? How many other avionics centers would do the same?
And that was just one announcement from yesterday. How many other deals, announcements, reports, etc... fly across our desks that we do not understand? Can we expect the public to understand more than we do ... if they do not spend as much time studying?
Teradyne should do what the mutual fund industry is now doing. Writing their prospectuses and reports in a language that the average citizen could understand. After two annual reports from Teradyne, I haven't the foggiest notion what they do ... but I just added another 500 shares based on the fact that ... THEY DO!
The market is skeptical that Ter.will report any improvement in bookings over Q2!!!!! If it's true the stock will continue to languish in the low to upper 40's and 2001 estimate will be cut back to $3.75. A bookings number in the low $900m will propel the stock quickly to the low $70s.