Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Zeev Hed who wrote (2226)	6/29/1999 11:21:00 PM
From: A. Edwards	Read Replies (1) \| Respond to of 3069

Veeco Instruments-Industry Pricing Pressures Weigh on Stock Merrill Lynch Reason for Report: Recent Price Weakness Mark FitzGerald Thomas R. Diffely June 23, 1999 Investment Highlights: · Shares of VECO have fallen 20% during the last two trading sessions on concerns over the company's ability to meet the street's expectations over the next few quarters. · Pricing pressures in the data storage industry have weakened many of the company's customers. Previously, we have cautioned about the health of ReadRite, of one of VECO's largest customers, and stated the downside risk to losing existing orders would lower our 1999 EPS estimate from $1.55 to $1.35. · With just over one week left in the quarter the company is not commenting on specifics. VECO typically has back-end loaded quarters. · Even though pricing pressures persist the industry move to GMR continues. We believe Seagate has recently placed a $5-$8 million order with VECO and does not appear to be slowing its technology ramp. · We believe the stock has discounted most of the bad news and the downside risk of a worse than expected earnings announcement would be the $24-$26 range while the upside from a positive report would be mid to high 30's. · Our $63 price objective assumes a 30 multiple on CY'00 estimates of $2.11.