+) A case for CREE
Rated a BUY
Cree, Inc. develops, manufactures, and markets silicon carbide-based semiconductor devices. For the 26 weeks ended 12/26/99, total revenues increased 67% to $44M. Net income totalled $10.4M, up from $5.2M. Cree is making the world more colorful. The company (formerly Cree Research) makes silicon carbide (SiC) diodes and wafers. Its blue and green light-emitting diodes (LEDs), which account for about half of sales, are used by companies such as Siemens to make dashboard lights, market tickers, and other products. Cree also provides SiC wafers, which work at higher temperatures and voltages than standard silicon wafers, primarily to research labs. Cree subsidiary Real Color Displays makes full-color LED modules used in large-area video screens, such as the giant screen in New York's Times Square. US government research contracts account for 10% of Cree's sales. Nearly 65% of sales are to customers outside the US.
Recent Price $ 194.00
52 Week High $ 202.00
52 Week Low $ 16.63
Mkt. Cap. (Mil) $ 6,399.87
Shares Out (Mil) 32.99
Float (Mil) 25.10
Price/Earnings (TTM) 332.76
Price/Sales (TTM) 76.37
Price/Book (MRQ) 40.52
Price/Cash Flow (TTM) 232.61
Revs and EPS have increased five consecutive quaters per Hoovers
MG has Mar00 EPS est at 0.20 and Jun00 at 0.22.
Surprises range from 8-18% in last five quarters.
Chart is classic green volume on Feb 3 and upward consolidation since then on declining volume.
Seven insider sales in Nov99.
Insiders own 24%.
Institutional ownership increasing steadily from 45% to 60% in last four quarters.
Several good posts on the CREE and G&K Investing thread. Many feel that it dominates a market sector with multiple streams and numerous patents.
Marketcap is low and has plenty of room for expansion, but revenues are low to cap. This could take a serious hit if it ever misses earnings, but track record has been good. Semiconductor sector is hot and CREE should benefit. LED market is unknown. Volkswagon uses CREE LED's. As costs are lower, the uses should increase. Never cheap this one. Chartwise, this one should have a stop of $165 and $145 final sell out.
Jack |
