7.85 +0.26 (+3.29%) Sell

Joy for VECO investors as it ranks better than it's peers but, has not managed to breakout

14 min read

VEECO INSTRUMENTS INC ranked among the best performers on Wednesday. It delivered +3.29% to close at 7.85. On a day when the overall market breadth was 35%, it closed higher than 85% of the market. In comparison, the benchmark SP500 index closed today at +0.54%.

[Themes containing VECO]

Buy-and-Hold investors in VECO experienced a maximum drawdown of -33.24% over the last three months. It delivered -28.31% during this strong bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +16.83%.


VECO has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 27 Apr, 2017 to 9 Nov, 2018. Over the last 2 years 11 months and 8 days, VECO underperformed the SP500 index on 49% days. Which indicates that on days VECO underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months VECO was mostly loss making and delivered on average -0.46% per day. It's best return during this period (of +7.42%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -12.62%) was on Thursday, 1 Nov, 2018. The longest stort-term trends during this period were 6 profitable and losing days. The bullish trend (which returned +16.46%) started on 26 Nov, 2018 and went on till 3 Dec, 2018 while the bearish trend (which returned -15.45%) started on 4 Oct, 2018 and went on till 11 Oct, 2018.

The last 12 months saw VECO's investors making profits in 4 months and incurring losses in 8 months. VECO was less consistent in delivering monthly returs than SP500 index. VECO was also a more risky investment than SP500 index as it's worst month in the last year, Aug 2018, returned -18.09% compared to -7.28% returned by SP500 index in Oct 2018. VECO had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Aug 2018 to Dec 2018) during which period it delivered -60.38%. It is interesting to note that both VECO and SP500 index significantly outperform during months when quarterly/annual results are announced.

Let him who would enjoy a good future waste none of his present.
-- Roger Babson

VECO is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in VECO's volatility from 14 Sep, 2018 to 1 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that VECO has significant positive skewness in it's return distribution. This indicates that investors can expect VECO to recover from drawdowns quickly. Which makes VECO a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

SP500 index has more chance of extreme outcomes than VECO. Therefore, SP500 must receive a lower allocation than VECO in your portfolio. VECO usually has shorter drawdown period than the SP500 index.

Based on your interest in VECO you may find it interesting to know that NIHD, HEAR and ECYT have all shown remarkable performance this year and deserve to be on every investor's watchlist.

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