Verigy (VRGY) Confirms Guidance

Posted by Kirk Lindstrom Aug 8, 2007

On August 7, 2007 at 10:12AM PST Verigy was down nearly 33% from its recent high of $30

• Verigy Charts

Yesterday I posted here that I thought clueless people were selling Verigy (Ticker VRGY) to lock in gains they were fearful of losing on the market correction after the 1 year lock-up expired.

• Kirk Lindstrom - VRGY Sell-off Reason @ Aug 7, 2007 10:12 AM
• Note how the chart started to go down at the 1 year after IPO mark. Lock-up ended and insiders can sell after a double....
• Maybe it will fill the gap but $30 to $21 on no news.... very odd. From what I can tell, it is being sold off with the R2000. Even with the sell off, it is still one of my best gainers for the year.
• It might be people selling to lock in gains after going public a year ago. It had a similar sell-off after they distributed shares to Agilent shareholders who didn't know what value the company had. Maybe panic selling by the insiders and former HP/Agilent employees I used to work with that rode their HP and Agilent up and down in 1990's to 2002...and don't want that to happen again..
• PE under 10 and sold off baby with bathwater as far as I can tell..
• Disclaimer: I own it with big profits already and (am) buying more.

On Aug 7, 2007 at 12:31 PM PST Steve T. posted here he bought VRGY yesterday at $20.40.

Today, Verigy announced all is well. They expect their third quarter results to be within issued guidance range. Press Release.

As I type, Verigy is trading at $23.45, up 15% since SteveT's buy yesterday!

Note 1: Verigy will release its complete results on Aug. 22.

Note 2: I purchased Verigy for my newsletter and personal portfolios with big gains already. My newsletter has an average price per share under $20. I've added on this sell-off and expect the stock to rally to new highs but I may sell some or all of my personal and newsletter shares before this happens. I will not necessarily post future trades in public but I will tell newsletter subscribers of any changes to the newsletter portfolio before or when it happens. (I say before because I have an "auto sell" level already in place for some of the recently purchased Verigy shares.)