LEDs - Light Emitting Diodes Stocks featuring CREE
A leading Silicon Carbide and LED stock CREE (Float 70 million shares) fell 23% on Friday after announcing earnings after Thursday's close that missed by one cent. Perhaps more importantly the company issued guidance that was considered tepid by many investors but there are reasons to believe the company may have a very exciting future.
Yahoo CREE Ouote and News:
finance.yahoo.com
Yahoo Fundamental Data
Cree, Inc. develops, manufactures, and markets silicon carbide-based semiconductor materials and electronic devices.
Hoover's Capsule
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Cree is determined to brighten your day. The company makes silicon carbide (SiC) diodes and wafers. Its blue and green light-emitting diodes (LEDs) are used by companies such as Siemens to make dashboard lights, market tickers, and video screens, including the giant screen in New York's Times Square. Cree also provides SiC wafers, which work at higher temperatures and voltages than standard silicon wafers, primarily for research labs. More than two-thirds of sales come from customers outside the US. The company has used acquisitions to broaden its selection of high-brightness LED and radio-frequency transistor products.
Companies involved in LED Development
finance.yahoo.com
CREE Fundamental Data from WSRN.com
wsrn.com
Yahoo Historical Pricing back to 1998
chart.yahoo.com
Six Month Chart from StockCharts.com
stockcharts.com[h,a]daclyyay[pb50!b200!d20,2][vc60][iUb14!La12,26,9!Lk14]
Conclusions:
CREE appears to be a leading stock in the LED market which is thought to have an expected growth rate of over 50% per year. This is already a bigger than $2.5 Billion market per year. The company is also involved in a number of other markets including LCD's and Optical Storage using blue laser diodes.
Technically I see CREE falling below 22 again before I would consider buying it for my own portfolio. This will probably happen tomorrow.
The company is expected to earn 65 cents per share next year. This might be conservative. In addition CREE has had a stock repurchase plan in place.
From Cary previous post. I would like to participate in a discussion about when and how much (% of portfolio, assets) to invest.
Cary, I would be happy to participate in a discussion like this but I need to know more about whether you are discussing CREE alone or investments in general. I do not think there are any easy answers though as each individual must tailor their own investment style to their own risk tolerance and financial situation. Age, available capital, economic cycles and many other factors must be included in any logical discussion.
RtS |
