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Technology Stocks : GGNS Genus -- Ignore unavailable to you. Want to Upgrade?

To: Sam Citron who wrote (1986)	1/13/2005 6:21:09 PM
From: The Ox	Read Replies (1) \| Respond to of 2006

CREE made a big mistake by not putting out lower expectations. Add in the very weak forward guidance and you have a share price disaster! From last quarter's release: Business Outlook: Cree provides guidance for its second quarter of fiscal 2005 indicating that it currently targets revenue in a range of $98 to $100 million with earnings of $0.30 to $0.32 per diluted share. The target for earnings per share is higher than the current First Call analyst consensus estimate of $0.28 per diluted share for the second quarter of fiscal 2005. This quarter they missed on the revenue end by 1/2 million and did fine on the EPS side. However, the street had been bumping up expectations and the company had not "warned" that the analysts were too bullish. Combined with the weak forward guidance for next quarter (maybe now they've learned their lesson and have given low ball numbers) and they get taken out behind the woodshed for a flogging. It does suggest that there is plenty of weakness in this sector but this is nothing new to you and me. GGNS/AIXG stock prices reflect the very weak sector fundies at the moment. I still have 2005 being a very tough year for compound semi companies with a substantial pickup starting very late in 2005 at the earliest and more likely by mid-2006.