Sold ~2% position in Teradyne, Inc. (Ticker TER) at $11.01 for a realized loss of 5.4%.
Quarter was fine but the outlook for the December quarter was more bearish than I had anticipated:
"Guidance for the fourth quarter of 2010 is revenue of $300 million to $325 million, with non-GAAP net income per diluted share of $0.21 to $0.28 and GAAP net income per diluted share of $0.14 to $0.20." The consensus revenue and non-GAAP EPS estimates were $447 million and $0.59.
I expect to continue to watch on the stock, see where it settles, and potentially re-enter a position once I have a better insight into the likely 2011 trends. I expect the street and market to become overly bearish on the stock, which should provide an attractive entry point should the outlook for 2011 brighten.
The December outlook by Teradyne does give me some pause about my ~2% position in KLIC since they have similar customer bases.
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