DARK HORSE HEDGE – What I Like About You, VECO
DARK HORSE HEDGE – What I Like About You, VECO
By Scott Brown at Sabrient, and Ilene, at Phil’s Stock World
When you go up, down, jump around,
That’s what I like about you
Never wanna’ let you go, know you make me feel alright, yeah
Veeco Instruments Inc. (Veeco) (VECO) designs, manufactures, markets and services enabling solutions for customers in the high brightness light emitting diode (HB LED), solar, data storage, scientific research, semiconductor and industrial markets. In its LED and Solar segment, Veeco designs and manufactures metal organic chemical vapor deposition systems that are used to make HB LEDs or solar cells made of III-V compound semiconductors. In its Data Storage segment, Veeco designs and manufactures equipment used in the production of thin film magnetic heads that read and write data on hard disk drives. In its Metrology segment, the Company designs and manufactures atomic force microscopes, scanning probe microscopes, stylus profilers and fast three-dimensional (3D) optical microscopes… (Sabrient’s Ratings Report)
Sabrient rates VECO a Strong Buy for its superior value and growth profiles, which indicates a stock that should outperform the market.
Read Sabrient’s full report here.
We liked a lot about VECO when we added it to the Dark Horse Hedge virtual portfolio at $31.93 on August 25, 2010. Using Phil Davis’s Buy/Write strategy, we bought half a position in the stock and sold October $32 calls and puts against it (1 put and 1 call per 100 shares of stock).
With option expirations on Friday, October 15, it’s time to decide if we "never wanna let you go," for now, or if we want to close the trade and take profits.
VECO closed at $36.51 yesteday. We could keep the $6.20 option premium and let VECO get called away for $32. But why do that when there is so much to like about VECO? We learned Friday that Bruce Kovner’s Hedge Fund has been buying VECO shares too:
Due to portfolio activity on September 28th, 2010, Caxton Associates has disclosed a 5.3% ownership stake in VECO with 2,168,800 shares. This is a brand new position for the hedge fund as they did not own it as of June 3oth. Kovner of course has graced the pages of Forbes’ billionaire list due to his success as a hedge fund manager. (See http://seekingalpha.com/article/229118-bruce-kovner-s-hedge-fund-starts-new-veeco-instruments-stake?source=yahoo)
And on…
Related Posts
