It's pretty rare for a company at the leading edge of an emerging technology to have a smooth growth trajectory, and LED leader Cree (Nasdaq:CREE)
has certainly had a few wobbles over the years. That said, Cree has
established itself as one of the “Big Five” LED chip companies, one of
the three major integrated LED lighting companies, and a leader in
patents and technologies. Couple that with a greater than 10-year run of
positive free cash flow and it's not hard to see why Cree is a go-to
name for growth investors.
That popularity comes with a cost, though. It's exceedingly rare to see
a company's stock rise more than 150% in 12 months and still have
modest expectations and/or an undemanding valuation attached. Given that
margins are a pressing concern with Cree and the company's guidance for
the next quarter looked light, it's not too surprising to see the
shares indicated down in pre-market trading.
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