Forecast Report: VECO
02/07 05:47 PM
05:47 PM Eastern Standard Time, 02/07/2011 (MidnightTrader) -- Veeco Instruments (VECO:$45.14,00$0.57,001.28%) declined in after-hours trade after coming in shy on Q4 revenue, beating on earnings, and setting its guidance below the Street view. VECO cratered to an early evening low of 40.25 before setting off on a session-long upside run that took it from 40.80 to a late high of 44.30, an area where it was still modestly in the red. It dropped back to about 43.50 to 43.20 late in the session. Evening indications would suggest VECO records a potential pre-market open Tuesday near 44 to 43. VECO has recorded an earnings-driven after-hours decline in two of the last 12 quarters tracked in our MT Pro database. 100.0% of the time (2 out of 2 times) the stock reversed in the opposite direction by the close of the next day's regular session compared to the Extended Hours "effective close". When it reversed, the price closed in the opposite direction on average by 6.1% (in 2 events) from the "effective close". While the downside historical data isn't overly predictive, tonight's rather aggressive surge off the early lows would at least have us looking at a potential long play in the shares on Tuesday. Longs may want to watch for any drift back near the 41.50 to 42.50 area, levels where buyers pushed into the shares with some urgency tonight and where there may be room to catch some upside bumps back toward 43 or above. More risk tolerant longs may want to sit closer to the 43 to 43.50 range, an area likely to see early day interest tomorrow and perhaps set up as a tentative floor support for possible pops back near 44. Price: 43.47, Change: -1.67, Percent Change: -3.7
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