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Technology Stocks : Veeco Instruments-Who? -- Ignore unavailable to you. Want to Upgrade?

To: Donald B. Fuller who wrote (2221)	6/29/1999 12:18:00 PM
From: Carl R.	Read Replies (1) \| Respond to of 3069

VECO has the additional benefit that they also sell to industry and to semis. It is true that due to strong sales to drive makers combined with weak sales to the semis, the share of sales to semis has fallen to 20-25%. However I would guess that that percentage could rise significantly over the next several quarters, while sales to the disk sector could fall back a bit, say to 50%. Thus VECO is partially insulated from the drive cycle. Also VECO is bottoming here, and if disk sales explode next year as predicted, VECO could end up with volume based sales in addition to technology sales, and the stock could easily explode to the upside. On the other hand, SEG is not far from its bottom, either, and they are very well positioned to benefit from an explosion in high end storage that is expected soon. As I posted earlier, projections show that over the next several years the share of computer hardware dollars spent on disk storage is expected to grow rapidly. SEG and IBM are the main players in high end storage, and both should do well. SEG also has software sales and some interests in VRTS and Dragon Systems, I believe, that also insulate it from the drive cycle. Thus I don't see now as a good time to sell SEG, either. As for QNTM, I have no opinion. I am not selling my VECO here, and I wouldn't mind buying a bit more. I am also considering acquiring some SEG, though. Therefore I can't really advise you to sell one to buy the other, or vice versa. Good luck, Carl

To: Donald B. Fuller who wrote (2221)	6/29/1999 1:30:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 3069

Donald, if you have 8 times more of VECO than DD, I would not buy more VECO. The DD's are weaker and could become even weaker and make new lows. If you want to lighten out on these, go outside the DD. One I would recommend (and have for some time) is RMBS (Carl vehemently disagrees on this and is lucky so far not to have pulled a short <G>). I think you still have a chance to get some RMBS under $90, but not for too long. Long term (2 to 3 years), I believe that RMBS will give you a triple from here, I doubt either SEG or QNTM will (VECO might). Zeev