As to when to enter or reenter CREE.....I will leave it to the TA pros to define what the charts tell us, but from a fundamentals standpoint there are some factors here which just make me love this stock.
1. Sequential quarterly growth near 30%. YOY earnings will exceed 100% handily. And, they may be able to duplicate the feat in their calendr year 2001.
2. Capacity constraints have been their biggest problem now that the market for LEDs has taken off. Capacity will increase sixfold by the end of this calendar year. Then, as the iceing on the cake, the wafer size will go from a current two inch, to a three inch. A four inch will be produced in 2001. Yield is improving all the time. So, what are we likely talking about in terms of CREE's increased production of LED quality wafers in, say, Feb. 2001 vs. October 1999? An 18 fold increase? Or more!
3. And they won't waste all that wafer and crystal capacity on LEDs. (even though with World Theatre they can sell billions). Other more lucrative product designs await them. All are in R and D and some will be out by the end of calendar 2000. Maybe a lot sooner.
4. They are sitting on 240 million dollars, with joint venture partners likely being lined up for the new products. Announcements could be soon.
5. The saga of the blue laser continues.
6. And, the ultimate holy grail. The next commercial source of inexpensive, long-lasting "white light".
Hey, I like the story now. |
