Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : LED light bulbs and the manufacturing of them -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Sunshine who wrote (44)	1/5/2014 1:16:38 PM
From: The Ox	Read Replies (1) \| Respond to of 140

Not sure you are missing anything obvious, Mr. S. There was a very significant investment surge in this sector from 2008-2011. One look at the income statements from companies like VECO and AIXG will show how their revenues exploded upwards and then imploded downward the past couple of years. The drop for both of these companies was from a billion in revs to roughly 300 Million in the last 2 to 3 years (2011-2013) and AIXG will likely post 2013 revs below $200 million. Both companies are expected to see a very large rebound in 2014 on a percentage basis (AIXG 50% and VECO 25%) but these figures are coming off a very harsh low. Pull up a 5 year chart and you will see that once it was clear in 2011 that investment in equipment was way ahead of the curve, AIXG fell from 40s and 30s early in the year down to (basically) the levels it's been trading at since the end of 2011. VECO's chart is not much different. Investing in this sector is tough for many reasons but the main one is there is more competition building each day. The heavy hitters, Samsung, GE, Philips, etc... these companies have nearly unlimited resources if they choose to make a run at taking market share from their competition. IMO, we are entering an exciting time for this sector. The revolution is here and now. The fact that solar technology has improved to the point where a very small investment can power LED lighting almost anywhere in the world, is a very, very big deal in the emerging third world consumer base. Similarly, the high end LED lighting that can change an entire room's color scheme or transition from color to color based on whatever someone wants to program is also very exciting....and numerous other creative ways to look at lighting which were never even considered a few short years ago! Like changes in biotechnology, the revolution in lighting, electronics and power generation/consumption is amazing to watch and follow. Lastly, we should be nearing an upcycle in new equipment investment. Progress is steady and equipment bought 3 or 4 years ago can't compete with the latest generation process technology. At the same time, investment in the latest equipment is expensive, to say the least!