Four Reasons to Buy Teradyne

Teradyne (TER) is the world's leading supplier of automatic test equipment used by the semiconductor and telecommunications industries. This Massachusetts based company is positioned at a key juncture of the ongoing electronics revolution, including wireless devices of all kinds. Teradyne will declare earnings on July 29th. The consensus earnings are $-0.24, with a high and low of $-0.21 and $-0.28, respectively. We believe that the current price of $8 and market capitalization of under $1.4 billion represents an attractive entry point for investors. Here's why:

1) Teradyne is an excellent company with very experienced management which has survived and thrived through many economic cycles since the company was founded in 1960. Under the trying circumstances of 2008, the company gained market share from its competitors for the third year in a row. Management moved very quickly with cost control measures in response to the huge reduction in demand for semiconductors and semiconductor testing equipment in the 4th quarter of 2008 and first quarter of 2009. As a result of these measures and recent signs of improvement in semiconductor demand, the company is expected to return to full year profitability in 2010.