Veeco Instruments-Who? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Veeco Instruments-Who?

VECO 29.15

-0.6%

Oct 30 3:59 PM EDT

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: Sam	9/1/2010 4:08:18 PM
	1 Recommendation of 3069

Forgot to post this note from ML on VECO's buyback last week: $200M buyback, could add $0.80 to our EPS estimate VECO announced its board has authorized the repurchase of up to $200M worth of company stock over the next twelve months. With cash approaching roughly $11 per share post the sale of the Metrology business, we view this as the right move by management given the recent weakness in the stock price and an indication of the management’s belief in the strength of the business (improving orders in 2H10, in our view). As of the close on August 24, $200M would equate to 6.4M shares or 15% of the fully diluted shares outstanding as of the close of 2Q10. The lower share count could add $0.80 to our 2011 non-GAAP EPS of $4.85. We reiterate our Buy on VECO. Remaining cash leaves ample breathing room With $160M in cash coming in from the sale of the metrology business and potentially $200M set aside for repurchases, VECO’s net cash position is still >$270M, or about 20% of their market capitalization.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next