Cree, Inc. (NASDAQ:CREE)

CAPS Rating: 3 out of 5

The Company is engaged in developing and manufacturing semiconductor materials and electronic devices made from silicon carbide, gallium nitride and related compounds.

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Player Avatar Jeffrey2012 (44.15) Submitted: 7/11/2011 2:38:24 PM : Underperform Start Price: $31.29 CREE Score: +16.71

The company is facing increasing competition from Chinese manufacturers and the current price war is hitting home. The commoditization of the LED market is going to drop prices.

This would have been a good company if it was in a growth mode which is no longer the case. Sadly, it's pristine balance sheet makes it an interesting value play if it hits the low teens. But until then or until it can somehow stop the downtrend in its business, it's going to be heading down for a while.

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