interesting excerpts...
can't post the article, (copyright) but Fred Hager has a long-term price objective of $450 on Cree.
...However, as a result of technological advancements, the level of brightness of Cree’s LED chips is now virtually equal with those of Nichia, and they still cost about 50% less ($.25-$.30 for Cree’s chips, $.60-$.65 for Nichia’s)...
...The demand for Cree’s LED chips has become so overwhelming that not only has the company seen triple-digit earnings growth for its LED division, it’s also facing a one-year order backlog for its products; and this is probably just the beginning....
...The market opportunity in the cell phone market by itself is astounding. It’s estimated that over one billion wireless handsets will be sold in 2004. Cree currently receives about $4 in revenues for every handset sold that uses its LEDs....
...the windfall the company would reap from this market would still be enormous....
...Dwarfing even the potential of the wireless handset market is the “holy grail” for the LED industry: the replacement of the electric light bulb...
... It should also be noted that these manufacturing efficiency gains on Cree’s part should allow the company to more easily meet the exploding demand that it’s facing, as well as see steadily increasing profit margins ...
...Then there’s the blue laser, the device whose development for commercial production is considered to be the #1 priority for Cree’s R&D department,...
... Given how many different devices currently utilize infrared lasers, the market potential for blue lasers, provided that they can be produced both cheaply and wit high quality, should run well into the billions....
anyone who doesn't follow Fred Hager, should check out his website
VT |
