QUOTE AND NEWS
Market Intelligence Center  Nov 13  Comment 
With bullish technical indicators and a 3 STARS (out of 5) hold ranking from Standard & Poor’s, Veeco Instruments (VECO) could be an attractive play for investors according to MarketIntelligenceCenter.com's patented option-trade picking...
Market Intelligence Center  Nov 6  Comment 
After closing Wednesday at $35.80, Veeco Instruments (VECO) presents an attractive opportunity to get a 5.11% return in just 72 days, which is an annualized return of 25.88% (for comparison purposes only). To enter this trade, sell one Jan. '15...
Market Intelligence Center  Oct 31  Comment 
For a hedged play on Veeco Instruments (VECO) MarketIntelligenceCenter.com’s algorithms selected the Dec. '14 $34.00 covered call for a net debit in the $32.70 area. That is also the break-even stock price for the covered call. This trade will...
Benzinga  Oct 30  Comment 
In a report published Thursday, Deutsche Bank analyst Vishal Shah reiterated a Hold rating and $40.00 price target on Veeco Instruments (NASDAQ: VECO). In the report, Deutsche Bank noted, “We expect bookings recovery to continue over the next...
Market Intelligence Center  Oct 29  Comment 
The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artifical Intelligence Center found a trading opportunity with Veeco Instruments (VECO) that should provide a 6.95% return in just 80 days. Sell one Jan. '15...
Forbes  Oct 14  Comment 
Investors eyeing a purchase of Veeco Instruments Inc. (NASD: VECO) stock, but tentative about paying the going market price of $31.22/share, might benefit from considering selling puts among the alternative strategies at their disposal. One...
Market Intelligence Center  Oct 13  Comment 
After Friday’s trading in Veeco Instruments (VECO) the algorithms behind MarketIntelligenceCenter.com's Artifical Intelligence Center picked out a trade that offers a 5.75% or 21.84% (for comparison purposes only), while providing 10.70%...




 
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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