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: Carl R. who wrote (243)	3/14/1997 10:10:00 PM
From: Carl R.	of 3069

I don't know why this keeps happening to me. This is the fourth time in a year that a company that I have a holding in elects to dilute itself by buying another company with stock. In all three prior cases the stocks are down since the merger was announced. First CUBE bought Divicom. Then PMAT bought Electrotech. Then as if that weren't enough, KLAC bought TNCR. Actually I lucked out and sold COMS at 42 before they announced that they were buying US Robotics. So far the scorecard is: CUBE down from 40's to 28, PMAT down from 13 1/2 to 11 1/2, KLAC down from 41 to 38 (of course TNCR is up - 30 to 37), and COMS down to 35. Prior to the merger I believed that VECO was fully valued at about 35. I no longer believe it is worth 35. I think full value is 26-30 now. As a result I sold the shares in my IRA, and tried to sell half of my other shares but didn't get it done. What I can't figure out is why I keep ending up on the wrong end of these deals. Why can't I own shares in the company being acquired? For some reason this has never happened to me since Oxydental Petroleum bought Iowa Beef Packers in the 70's, I think. (Yes, Oxydental underperformed the market after the merger.) I still can't figure out why a company with sales of 18 million and orders of 30 million in 1997 is worth half of the value of a company that had orders of $39 million in the fourth quarter alone (based on $27 million in sales and a reported BTB of 1.43). Carl

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