QUOTE AND NEWS
Benzinga  Aug 20  Comment 
Veeco Instruments (NASDAQ: VECO) shares may be under pressure after Summit Research cut its price target from $30 to $25. Summit currently has a Sell rating on the stock. With shares currently trading at 41 times forward earnings, Summit...
Market Intelligence Center  Aug 15  Comment 
Option-trade picking algorithms patented by MarketIntelligenceCenter.com found a trading opportunity with Veeco Instruments (VECO) that should provide a 5% return in just 64 days. Sell one Oct. '14 call at the $34.00 level for each 100 shares of...
Benzinga  Jul 31  Comment 
In a report published Thursday, Bank of America analyst Krish Sankar reiterated a Neutral rating on Veeco Instruments (NASDAQ: VECO), but lowered the price target from $45.00 to $43.00. In the report, Bank of America noted, “VECO reported 2Q14...
SeekingAlpha  Jul 31  Comment 
Veeco Instruments (NASDAQ:VECO) Q2 2014 Earnings Call July 30, 2014 5:00 pm ET Executives Debra Wasser - Senior Vice President of Investor Relations & Corporate Communications John R. Peeler - Chairman, Chief Executive Officer and...
Market Intelligence Center  Jul 29  Comment 
After Monday’s trading in Veeco Instruments (VECO) MarketIntelligenceCenter.com's option trade-picking algorithms uncovered a trade that offers a 4.63% or 31.91% (for comparison purposes only), while providing 7.08% downside protection. The...
Market Intelligence Center  Jul 23  Comment 
After Tuesday’s trading in Veeco Instruments (VECO) the algorithms behind MarketIntelligenceCenter.com's Artifical Intelligence Center picked out a trade that offers a 5.61% or 34.72% (for comparison purposes only), while providing 6.23%...
Market Intelligence Center  Jul 14  Comment 
Veeco Instruments (VECO) presents a trading opportunity that offers a 6.95% return in just 96 days. A covered call on Veeco Instruments at the $34.00 level expiring on Oct. '14 offers an assigned return rate of 6.95% or 26.43% annualized. This...
Market Intelligence Center  Jun 25  Comment 
MarketIntelligenceCenter.com's patented algorithms have selected a trade on Veeco Instruments (VECO) that returns 5.82% in 52 days for an annualized return rate of 41%. This diagonal spread pairs a short position in the Aug. '14 $33.00 call, with...
Market Intelligence Center  Jun 16  Comment 
Friday’s trading in Veeco Instruments (VECO) gives options traders an opportunity for a 28.44% return. By selling the Oct. '14 $32.00 call and buying the Jan. '15 call at the $25.00 level for a net debit of $5.45, traders will book a profit as...
Market Intelligence Center  May 15  Comment 
Veeco Instruments (VECO) presents a trading opportunity that offers a 4.02% return in just 65 days. A covered call on Veeco Instruments at the $30.00 level expiring on Jul. '14 offers an assigned return rate of 4.02% or 22.59% annualized. This...




 
TOP CONTRIBUTORS

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.

Competition

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]



References

  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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