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

To: orkrious who wrote (1871)	2/17/1999 10:25:00 PM
From: Carl R.	Respond to of 3069

Actually Jay, your graphs make something clear. That is that VECO is being valued with the drive sector, which clearly is reasonable since 2/3 of VECO's business is tied to the drive business. Check out these graphs: techstocks.com techstocks.com You will note that VECO clearly fits better with the drive sector. Here is an interesting note, however. AMAT is currently selling at a P/S ratio of 9, which VECO has a P/S ratio of 3. If you toss out the 2/3 of VECO's sales that are related to drives, VECO would be selling at a P/S ratio of 9, the same as AMAT. What sense does that make? Is VECO's business in the drive sector worthless? Or is it the semi-related business that is worthless? Clearly VECO should be treated as a hybrid, part drive business, part semis. As long as VECO keeps posting a positive BTB and positive earnings, the stock will eventually recover. Carl

To: orkrious who wrote (1871)	2/18/1999 11:35:00 AM
From: Berk	Read Replies (1) \| Respond to of 3069

Jay FWIW in trying to explain the inexplicable (?)Data Points: The folks over on the P and F thread (TA) have a target of 41 on the stock. If you look at RS (Relative Strength)comparative charts of VECO vs AMAT, you go long VECO and short AMAT now. RS comparative vs KLAC is trending up and therefore not as definitive but appears to be similarly positioned. To target the disk drive sector, RS comparative vs SEG shows it to be "fair value" or the midpoint of a broad range that has existed over the past two years. At the moment SEG is up and AMAT as well as VECO are down; if the past is any guide that should change the question is how. As an aside with this kind of volatility you can't blame an insider if they want to diversify. My guess is a decision was made months ago that "if the stock ever gets back to fifty (?) we sell X%." I've known many people with large positions in one stock and that is the way it is.