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Technology Stocks : Wolf speed -- Ignore unavailable to you. Want to Upgrade?

To: RobertSheldon who wrote (5450)	7/3/2001 8:32:30 PM
From: akmike	Respond to of 10714

Even for those of us who have been in Cree for awhile the report is well worth reading. Thanks for the heads-up, Robert; I hope you and yours have a great Independence Day in the Valley of the Ferns or wherever! FBR has started Cree very conservatively wrt revenue and earnings for next year. (starting this week) It is to be expected that they will ramp those numbers up as the new products gain traction and visibility. I much prefer this scenario than rosy expectations which will have to be lowered. The sensitivity analysis to the NAZ was greatly known and commented on in the past, but I found the thesis relative to gross margins very interesting. Historical numbers have greatly exceeded their 25% CAGR going forward and certainly should do far better than that once CREE gets into the new product cycles. Given their history, CREE should also benefit from acquisitions as they fill out product lines. There is potential for explosive upside, and as they pointed out, the near-term could provide even better "accumulation" levels.