Revenue dropped in half last year and another 30% drop thru June. All together sales went from over $900 million in 2011 to under $300 million for 2013. In the filings, they state there is large overcapacity in MOVCD and the end markets for data storage are shrinking with no improvement in the near term. This should be a $10 stock IMHO, but the price jumped at the open so we'll see how this shakes out after all the hoopla is over getting the filings done and the ANALysts actually read them.
There were a few of us who challenged the VECO cheerleader brigade.
VECO's friendly investment bank Analysts such as UBS, Piper, B of A, JP Morgan,etc were telling the world the good times would go on forever. They were too busy speed dialing their Asian spys to see when VECO was getting another order to do their jobs and figure out that massive over capacity was developing. Veeco was selling the same Kool-Aid to investors in the Spring of 2011, while at the same time insiders were dumping their shares. Don't believe me, go look at insider selling during the first 7 to 8 months of 2011.
Orders will improve next year due to general lighting, but Aixtron is engaged in a major price war with VECO that will minimize any profits. Say bye-bye to the good old days of 2010-11.
LOL! a $10 stock! i think you forgot that they have ~$15 in net cash sitting around. If the business were worth as little as $10, then the stock would still be $25. But the fundamentals can't get much worse, which is typically the time to buy this type of company.
They will have less than $15 in cash after the acquisition. Last quarter's results have not been issued yet. Furthermore, it is not unheard of for semiconductor equipment makers to trade lower than cash value in industry downturns. See, for example ASYS which traded under cash value for a long time.
But considering the possibility of future profitability of Veco, and the fact that it probably won't take place until more than an year in the future, and only if the Chinese competition does not appear, I would say $20 is a fair price.