Veeco Instruments (VECO) Surging On News Elec-Tech Will Use For 2 LED Plants

On July 19th, I passed along the post at Notable Calls saying that UBS was expecting a big LED order for both Veeco Instruments (VECO) and Aixtron (AIXG) from Elec-Tech.  This morning, Veeco is confirming a large order from Elec-Tech  for 130 of its TurboDisc K465i Metal Organic Chemical Vapor Deposition, or MOCVD, systems as their “tool of choice” for two new LED factories in Wuhu and Yangzhou, China. I’m not sure whether this mean Aixtron has lost out on business with Elec-Tech.  Considering it is up about 3% in pre-market trading, I’ll assume that is not the case.  Perhaps an official announcement will be announced soon.

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VECO VP Bill Miller commented, “We are extremely pleased that Elec-Tech has chosen Veeco for their production requirements as they build out their aggressive plans in China. We look forward to supporting this important new customer with our best-in-class systems and world-class applications process support.”

Shares of VECO are trading up about 7% in pre-market trading and looking to rebound after getting crushed more than 30% in August alone.  There is significant support around $30 which it has yet to retest and resistance now around 37.

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