Veeco Instruments-Who? Message Board

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Technology Stocks : Veeco Instruments-Who?

VECO 29.26

-0.2%

3:59 PM EST

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To: orkrious who wrote (1730)	1/23/1999 9:37:00 PM
From: Justa Werkenstiff	Read Replies (1) of 3069

I have decided to short this stock at $61.75. It is a good company which is way ahead of its fundamentals. I have made good money on the long side. But the triggering point for my short is the secondary offering. Let's see - there are 15m shares outstanding with a float of 9.4m and they want to do a piggyback secondary of 3.6m shares? They will increase the float then by 38%. Well, good for them but I believe they have little hope of lining up chumps to take on these shares at this historically high valuation level. They will have to price the stock lower to get it fully subscribed and the market price of these shares will fall accordingly. The insider sales at far lower levels confirm my thinking. Moreover, I have to wonder out loud if management released their flat sales figures the other day (no surprise as guidance was flat -- nice btb) to test the waters on pricing the issue. Love that 1.92 beta. So whether there is a market correction or a secondary offering, the price should go down IMO and now is as good a time as any to go short.

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