Gorilla and King Portfolio Candidates Message Board

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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Seeker of Truth who wrote (14583)	1/8/2000 2:33:00 PM
From: unclewest	Read Replies (4) of 54805

Here's the CREE bear again. You'd think I was short the stock! ok i'll take the bull/long side. Maybe I'm talking somebody out of a small fortune here. I'm not saying nobody should buy CREE. It just seems to me quite likely that it will be a prince in a domain with no king. I'm saying that QCOM,NTAP,GMST,JDSU look like better investments. Malcolm, on a % basis, in the past year, CREE has grown revenues 4x faster than QCOM. CREE's earnings growth matches QCOM. with over 90% of the world's SiC production CREE has a larger market share than Q. CREE's revenues and earnings are growing at nearly the same rate as NTAP. CREE's earnings are growing faster than JDSU. With a huge new production facility to be occupied in June and another in October, CREE's revenues and earnings seem to be set to explode rapidly beyond the current 20% "sequential" growth rate. I believe with the addition of just one of these facilities, CREE's growth rate will then greatly exceed the other three. It's the area they are in that I don't like. Gee, it is the area that they are in that is precisely what i do like. I like the position they are in too. It is one of clear dominance in production of SiC and SiC products with rapidly expanding markets and great demand and no competition in sight. Not to mention a big fat patent portfolio. Another point, please remember that many materials have quite interesting physical properties but are too expensive for the purpose. The thing to remember is that CREE SiC is the new standard for light emitting diodes. replacing the more expensive and technically inferior sapphire based LEDs. 50% of CREE's revs come from LEDs. the CEO has stated that he could sell the entire SiC production into this market...the reason he doesn't is that some of the other uses for SiC have even higher margins. The power, microwave and RF uses for SiC have been discussed here before. CREE CEO has stated that new design wins are Nokia and Panasonic cell phones and Sony Playstation II. we are talking cutting edge technology going into cutting edge products. BTW CREE's current 53% gross margin (up from 47% the previous quarter) exceeds QCOM, NTAP and JDSU. CREE believes that current crystal yield may be increased up to another 300%. That will be awesome imo. I own all four stocks. unclewest i have to chuckle at the thread picks...They are increedible. Finding this thread is like finding a key to the treasury vault under your computer mouse.

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