Cree, Inc. (CREE)

i think the P/E ratio is just far too high to justify.

The world is done with CFL's. What were we thinking, anyway? The future is LED's

moneycentral rated: 10, navallier rated:A

The stock has gotten ahead of itself. They are not the only one with LED play. Almost all the big names are playing LED's. If anything Cree is very much limited to LED play.

CREE is the leader in LED manufacturing, and is investing VERY heavily in R&D and future growth, ensuring that it will retain it's top position. Still relatively small, CREE has room to grow as the sector grows as well. Management has it's eyes on future growth and it's recent investment in the company's R&D signals that this will be a solid long-term performer. Get it now before they start seeing the benefits of their capital expenditures.

It is a mover...

In my opinion, flourescent bulbs are only an intermediate step, due to medium power savings, and mercury in the bulbs. I expect LEDs to replace them, once the power outputs are comparable. In addition, with huge power savings, I would expect LED lighting to eventually lead to the obsolescence of incandescent lightbulbs.

Cree is a fine company and the LED market seems to be rapidly expanding. But the P/E is higher than it's ever been, and higher than the anticipated growth rate. At a P/E of over 100, it doesn't take much to send the stock into a tailspin. The upside is already more than priced in, while the risk is not. Price pressure from competitors in the LED market will force Cree to reduce costs quickly to justify that P/E. I wish them luck.

obama

It's recent breakout is running out of steam...How high can it goes still - $35 is an obvious mid-long term resistance? The downside potential is huge.

As LED lighting applications continue to grow, CREE which is a leader in LED components will show continued growth in EPS over the next few years.

Just found out that CREE is a publicly traded company. D'OH. Very familiar with their XR-E hi-power LED used in battery powered lighting products. Demand was so high, that only in recent months has production caught up with demand that Coleman was able to convert most of their battery-powered outdoor/camping lighting tools to the XR-E. Reasonably sure that in a couple of years, propane and gas powered lanterns will be replaced by battery operated light powered by LED's made by CREE.
Besides: EPS will increase from 10¢ to 40¢, and it has no debt. It don't get no more promising than this.

The company is one of the leaders in it's industry. Living in Silicon Valley... I have the skinny on this one.

cool down time.

earnings

a leader in a growth industry of energy

becausenit has a growing product market not likely influenced by our economic problems.

20.56

LEDs are the way lighting is going. Company has maintained notable sales growth and profitability of late, profitable operations, and gaining equity stakes in downstream suppliers.