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: orkrious who wrote (1791)	2/6/1999 10:05:00 AM
From: Carl R.	Read Replies (2) \| Respond to of 3069

I agree that the volume implies that the secondary has been placed. I believe that Merrill was supporting the price and reiterating their "buy" rating to try to keep the price stable after the secondary. The fact that Merrill has eaten a lot of shares means that eventually they will have to place those (i.e. sell them) as well, limiting upside potential from here. Now the big question is how long it will take for VECO to announce an acquisition, and who it will be. Carl

To: orkrious who wrote (1791)	2/6/1999 9:04:00 PM
From: Justa Werkenstiff	Read Replies (1) \| Respond to of 3069

Jay: Re: "I've never heard of an offering being priced and not sold (or susequently re-priced). You're sure this is an option?" Yes, if they have got to get the deal done by a certain date in their minds and they don't have enough takers or the takers want concessions for, say, difficult market conditions the price can come down. I have seen it before. Big boys win; small guys get screwed. Carl makes a good point about high volume after the announcement. But this could be the actions of people seeing a ceiling and selling out or it could be MMers trading shares between themselves in a repositioning effort. But what really caught my eye was the timing of that pricing announcement -- 9:48 am (BW) and 9:09 am (PR) on a trading day. If Veeco placed secondary shares in the market, I think they would give you fair warning. The release does not read like the shares are being traded: "Of the 3.575 million shares to be sold, 1.0 million are to be sold by the company and 2.575 million by certain selling stockholders." Sounds like future tense to me. Anyway, it is worth a telephone call to confirm that the secondary is in the market.

To: orkrious who wrote (1791)	2/7/1999 11:04:00 AM
From: Berk	Respond to of 3069

Jay I would be interested in what MER has to say, if they are willing to say anything. If you can't get a comment out of them, the implication would be negative since it implies that net they are long and they might be forced to dump the inventory. The large volume is in part institutions selling into the syndicate bid: VECO has had a wonderful move, volume is normally light, McCabe at MER is looking for a down move, let's unload. I'm still long but am very interested in what is brought out at the conference this week (and that comes from a market technician!).