Veeco Instruments-Who? Message Board

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Technology Stocks : Veeco Instruments-Who?

VECO 29.23

0.0%

Nov 28 9:30 AM EST

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To: Zeev Hed who wrote (240)	3/13/1997 10:22:00 PM
From: Carl R.	of 3069

Considering VECO is valued at 1.8x sales at the current time, this deal appears at first glance to decrease the value of each share by about $5 due to dilution. If Wyko has sales (potential) of $28m, and VECO has sales last year of $96m, and a btb of 1.43, implying even greater sales this year, why on earth would they value WYCO at 50% of VECO? Perhaps I just don't get it.... Maybe VECO is indicating that their existing products have limited growth potential? Or that WYCO has the potential for sales of say $80m in 1998? Or maybe the profit margin on WYCO's products is significantly higher than the profit margin that VECO now enjoys. In any case, it looks like a significant dilution to me. No wonder the stock is down so far. Carl

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