Hi Gordon, noticed the discussion on Cree. You will get no argument about AMCC's outstanding performance the last year. You may want to keep your eye on Cree, expecially at the fire sale price. Cree has 1/2 of AMCC's revenues and is selling at 1/6 of the market cap. Cree has similar growth rates, higher earnings, higher profit margins, and a monopoly on SiC products.
Cree did $108 mil. in revs. last year, and 5 weeks into their new fiscal year the backlog is already $167 mil. That's almost all LED business, which people seem to want to make fun. LED applications are growing exponentially as prices are coming down. Cree's yields are more than offsetting lowerin ASP's.
Cree WILL sell RF transistors this year. For sure the market is witholding judgement until sizable PO's are announced, and properly so. All the news I hear is that MESFET qualifications are going well and sales will be soon.
Cree is forecasting selling blue lasers for DVD applications in the $15/ea. range. They are gearing up to begin production in about 12-16 months. Nobody else can touch this price point. Again the market is discouting these potential revenues also, as it should.
Cree will easily double revenues this year, earnings are forecast for $1.34 this year, and many of us see them much closer to $1.75
Cree is still flying way under the radar. Even the funds who hold Cree don't really understand what Cree does except they are affiliated with the wireless industry. Again no comments required, and good luck with AMCC, as it has had a hell of a year.
MB |
