By: Michael E. Martinez

Veeco Instruments reported earnings last week of 22 cents a share (9 cents diluted) and net income of $2.7 million. Revenue was $112.8 million, up from a year ago by 10 percent. The revenue was above guidance of $100 to $105 million. The day after the company reported earnings, Veeco lost roughly 11 percent of its value, which is unjustified for these improving conditions within the earnings report.

I think you should buy Veeco here due to the compressing multiples and for a fact of their core business. Nanotechnology is still too young to be profitable. It's hard to invest in individual nanotech companies. Rather, Veeco makes the equipment that these research and development nanotech companies need. I feel this will go a lot higher, I'm not putting a price target on this stock however.

In the long term, we should see increased revenues at Veeco from atomic microscopes and the metrology sectors of their core business. Veeco isn't just profitable from their nanotech sector, their also a semiconductor company, hard drive parts maker. However, don't expect this to occur overnight, many investors dislike this stock so it'll take time to realize that Veeco is the right place to be as we transition to nanotech in the future.