When are you turkeys going to finally give it up? Are you stupid or just dishonest?
1. Two weeks ago, Market Research firm, IMS Research, revised it forecast DOWN to 1% growth in LED SALES. 2. There are numerous Analysts, market research firms, industry experts, etc stating there is massive over capacity, 40% to 100%, in LED production capacity. 3. Long time VECO backers Bank of America and Lazard just down graded VECO. Here is what Lazard had to say:
In its report, Lazard Capital writes, "We are downgrading VECO to NEUTRAL from BUY. While we like that the company has a strong balance sheet with $15 cash/share and is gaining share on the heels of its MaxBright tool, we recommend that investors take a more cautious approach due to: 1) a slowdown in the China market, which represents a key factor in driving growth, due to tightening credit and uncertainties over the subsidy policy; 2) uncertainty on the timing of the ramp in general lighting; and 3) weak overall demand in the LED market leading to significant pricing pressure."
4. AIXG, which recorded sales in its first two quarters of about 400 M euros and had about a 200 million backlog at the end of the June quarter, just lowered its 2011 sales from 800 to 900 M euros to 600 to 650 M euros.
FYI, that means future orders have crashed. So what if VECO maintained its sales guidance of $1B for 2011? FYI, between sales and its backlog at the end of the June quarter, it had almost $1 B.
Friends, let's be honest. It's all about too much installed capacity and orders, and AIXG just told as that orders have fallen into a BLACK HOLE.
BTW, VECO also told us orders would be down during its JUly earnings call!
That's why VECO has dropped alomost 50% since the end of May, and those orders are not coming back anytime soon!