Market Intelligence Center  Jul 9  Comment 
The patented option trade-picking algorithms behind MarketIntelligenceCenter.com's Artificial Intelligence Center have selected a covered call trade on Veeco Instruments (VECO) that includes 9.89% downside protection. Sell one contract of the Oct....
Market Intelligence Center  Jun 16  Comment 
Veeco Instruments (VECO) traded between $30.43 and $31.16 before closing at $30.87 Monday and presents some attractive trading opportunities today according to MarketIntelligenceCenter.com's patented algorithms. The computer program that picks...
Market Intelligence Center  Jun 10  Comment 
Veeco Instruments (VECO) traded between $30.62 and $31.16 before closing at $30.95 Tuesday and presents some attractive trading opportunities today according to MarketIntelligenceCenter.com's patented algorithms. The computer program that picks...
Market Intelligence Center  May 29  Comment 
MarketIntelligenceCenter.com’s patented algorithms have chosen the Oct. '15 $30.00 call for a couple of hedged-trading ideas on Veeco Instruments (VECO). A traditional covered call on Veeco Instruments yields 7.30% (19.02% annualized, for...
Benzinga  May 12  Comment 
Benchmark initiated coverage on Veeco Instruments Inc. (NASDAQ: VECO) with a Buy rating. The target price for Veeco Instruments is set to $38. Veeco Instruments shares have dropped 6.39 percent over the past 52 weeks, while the S&P 500 index...
Market Intelligence Center  Apr 24  Comment 
Veeco Instruments (VECO) was selected by MarketIntelligenceCenter.com’s trade-picking algorithms today after trading between $30.71 and $31.30 on Thursday before closing at $31.21. A diagonal spread using a long position in the Jan. '16 $18.00...
Market Intelligence Center  Mar 27  Comment 
A covered call identified by MarketIntelligececenter.com's patented algorithm on Veeco Instruments (VECO) could yield about 6.38% (20.80% annualized, for comparison purposes only) in 112 days. Pair a long position in the stock with the Jul. '15...


Veeco Instruments Inc. (VECO) designs, manufactures and markets equipment to make light emitting diodes (LEDs), solar panels, hard-disk drives and other devices. The Company operates in two segments: Light Emitting Diode (LED) and Solar, and Data Storage.[1] Nearly 80% of Veeco's revenue comes from Asia, a segment that grew at a staggering 125% year-over-year rate between 2009 and 2010.[2] However, such growth is highly erratic due to Semiconductor Cyclicality.

Business Growth

Following the global recession, Veeco experienced a rapid improvement in business conditions in late 2009 and continuing into 2010.[3]. Revenue in 2010 is $933.23 million, compared to $282.41 million in 2009. Net income also improved equally as drastically, with $361 milliion in 2010 and a loss of $15.56 million in 2009.[2]

Key Trends and Forces

Threat from semiconductor industry's cyclicality

The semiconductor market is notoriously cyclical. ]The semiconductor industry is affected by the fluctuating demand for PCs and cell phones, and by the rest of the electronics market. The demand in up cycles is so high that the chip manufacturers cannot always meet demand. On the other hand, if electronic sales, particularly PC sales, are slow, demand for chips can plummet. The semiconductor industry is at the whim of consumer demand more than corporate demand, adding to the volatility in demand.

80% of Veeco's Revenue Comes from Asia

About 80% of Veeco's revenues come from Asia due to the concentration of fabs there.[4] Many semiconductor manufacturers are building fabs or outsourcing to fabs in parts of Asia, particularly Taiwan. Asia has lower overhead costs, and it is also convenient to be located near major electronics markets such as Japan and China. The large growth potential in China could be a major factor for semiconductor demand in years to come.


Veeco's main competitors are:

Veeco remains a company with very high net margins due to the company's focus on the lucrative LED market in comparison to many of its competitors' focus on chip manufacturing. Veeco's net margin in 2010 was approximately 39%.[2]


  1. Reuters: Company Profile - VECO
  2. 2.0 2.1 2.2 Wikinvest SEC Files: VECO 2010 10-K, Page 26
  3. Wikinvest SEC Files: VECO 2010 10-K, Page 4
  4. Wikinvest SEC Files: VECO 2010 10-K, Page 31
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