Teradyne

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Teradyne ( TER) is the league leader in providing automated test equipment for the semiconductor industry. It's also a leader in providing book value growth for its investors. In the last year, TER has seen its book value per share climb by 25.5%.

Teradyne's offerings help chipmakers operate. Lately, though, a falling tide has beached all ships in the semi industry, as demand waned and inventories lingered at relative highs. That slowdown in chip manufacturing had a brutal effect on Teradyne's financial performance in 2008, but the firm took the slowdown as an opportunity to regroup, shoring up its business and consolidating its offerings into a single platform: FLEX. That rework has had stellar effects more recently as profit margins climbed to new highs and the firm's balance sheet swelled with cash.

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Today, Teradyne boasts more than $840 million in cash and investments, easily offsetting a $167 million in debt. In essence that means that around 24% of TER's market capitalization is made up of cold, hard cash. As semiconductors start ramping up production again in late 2012, that's impressive positioning for a stock with a sub-10 P/E and a track record of book value growth.

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