Stitch, if memory serves, they are going to get about $80 MM for the shares the company is selling, so far, VECO has executed with only minor flaws their plans (one could say that the loss of AFM to ZYGO was a flaw) and acquisition. The current book value is around $7/share, so current holders cannot complain when selling paper to the rest of the public at $55 to $65/share, this will only increase the book value of current holders (by about $5.2/share if my numbers are right), so current long term holders will simply say, VECO you did it right again, you go for funds when we incur minimal dilution and increase our book value in the process. As for dilution, only about 1.3 MM new shares are offered which is a dilution of 10% or so, which for the cash received, I would not consider it dilutive at all.
Now, VECO will have some cash for additional acquisitions and to support increasing sales. I think this secondary is actually a very good one. Compare this to the "rights offering" of WFR which is going under book value, and you will see in one case (VECO) a company issuing stock from a point of strength and on the other case (WFR) from a point of weakness.
Zeev |
