"I've done great shorts in my life, but this a total misapplication of the short strategy unless it's very short-term," Miller said. The analyst contends that Veeco's market is nowhere near saturation, and that doesn't even take into account the opportunity in the general lighting market expected to heat up once the U.S. moves to LED lighting in 2012. "This shorting is not based on legitimate fundamental analysis, but all technical. Veeco's market is not going to zero," Miller added.

Veeco shares weren't going to zero either, but Thursday was another day on which shorts were trying to push the LED stock that way.

--Written by Eric Rosenbaum in New York.

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