Gorilla and King Portfolio Candidates Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Gorilla and King Portfolio Candidates

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: FLSTF97 who wrote (12502)	12/9/1999 6:53:00 PM
From: unclewest	Read Replies (1) of 54805

I still think that CREE would have been smarter to raise prices enough to no longer be capacity constrained (it would make the new fabs easier to pay for.) The only caveat to that is if the move were strategic: a new player about to put product on the market and you need to squash his cash flow (a la Intel/AMD). Fundamental point is: do they have the rare set of management that can be effective in the tornado and on main street? this is from memory...figures may be off a bit... cree has some 55 million cash and 2 1/2 million in monthly net cash flow. the new plant that will triple production will be paid for from cash on hand and cash flow..no borrowing anticipated for the expansion. i don't know how to evaluate your fundamental point question about management...can you help there? seems they are doing a heckuva good job so far. the price reductions are most certainly aimed to make life difficult for sapphire based leds.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next