I too sold my traders at 149 this a.m (except for 100 shares, just couldn't part with 'em all). Just looking at the chart for the run of the last 4 days is freaking amazing. I can't imagine that there won't be a further pullback. UNLESS there is truly blockbuster news just around the corner. I think we will consolidate around the 130 range for the next bit, but hey that's my guess only. I would not be too surprised to see it rocket up to 160 with some news. I'm not sure when I will jump back in in my trading acct., it has been one heck of a ride.
I still have my core holdings which I plan on retiring on in about 3 years if this craziness keeps up! I follow Cree VERY closely and I'm sure will be adding to my holdings in the near future.
I, like others, get kind of carried away talking about Cree with other investors, and it is hard to make others understand the blockbuster potential that Cree has. The LEDS are a nice business, no doubt. BUT when the RF and MW transistors go into production, and when they commercialize the power switches, Cree's stock will explode. I have no trouble calculating Cree earning over $10 a share within 3-4 years. I also agree with Banc of America that Cree will earn in excess of $2 a share in the next fiscal year.
I'm sure I will be buying my traders back sometime soon, but the thin air at the elevation has clouded my thinking and I decided to bank a profit.
I have read Moore's GG book, and am convinced that that is the way to invest in this market. I feel confident that Cree's crossing of the chasm is imminent and the RF, MW and powerswitch devices will prove to all be readily accepted as discontinous technology. I have no idea how Cree will keep up with demand, if they will license or try to produce everything on site with further expansions. This should definitely be a fun ride for the next 5-10 years. My prediction,for what it's worth, is 230 by year's end, barring any market meltdown.
So, my advice, FWIW, is that this should be a core holding for all investors until the fundamentals change.
MB |
