Wait for Cree to Blink
It's been about six months since I last discussed Cree (CREE), the light-emitting diode (LED) and lighting company, even though the shares have been on fire. During that time, Cree shares catapulted higher and recently peaked at $45.50 -- up some 60%, compared with 8% for the S&P 500 and 5.6% for the Nasdaq Composite. That's a home run for a company that's poised to benefit from exploding LED lighting demand as LEDs inch closer to crossing into the general illumination market.
One of the key concerns with an industry that is undergoing a significant tipping point is the competitive landscape. We've seen this a few times over the last 10 to 15 years. Back in 2001, when mobile demand did not live up to expectations, many compound semiconductor player shifted gears toward LEDs. While that meant good things for the LED capital-equipment companies, it eventually led to a flood of supply that tanked LED industry pricing....423 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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