I'm no big-time investor, but purchased a few shares of CREE stock a couple months ago and have been very pleased to see how well it has done in a market that is generally declining.
With flashlight manufacturers having a hard time getting enough CREE LED's to make their products and the US government awarding CREE a contract to replace existing lighting at the pentagon with LED fixtures, I decided to buy some shares because it seems to me that CREE has more demand than they can supply and they are perfectly positioned to receive more and more of these government contracts since they are the major US company manufacturing LED lighting fixtures.
If the new president creates incentives for the rest of us to make the switch to LED's for our homes as well as government buildings, CREE will definitely be on the winning side of the economy.
Anyway, just curious if other people here have used their knowledge of flashlights and LED's to make financial decisions?
I work in Newport Beach, California and there was a recent article in the local newspaper about that whole green environmental federal stimulus. It seems like Newport Beach has been upgrading their street and parking lot lights to LED fixtures in order to save money on energy. It looks like city council was debating whether to apply that money towards finishing that upgrade sooner to get the savings faster.
At my work they have installed some LED fixtures in a new building that they just finished.
I've done very well over the years in another high tech stock, FLIR-- which makes thermal imaging equipment for military, police, and civilians (some BMWs now use FLIR cameras).
Now I'm thinking about researching Cree a bit--I really like their products -- and they appear to be the leaders in LED technology. In your views, does this company have long term competitive advantages over their competition?
I have lots of safer blue chips such as MCD, PG, PEP, etc.... the one area I need to diversify more in is the higher risk/larger reward smaller caps.
Re: CREE Went Up $3.37 Today. Anyone Know What Happened?
Yeah, that down market in 2008 took most everything with it. Nice bounce back though, for the markets and for CREE, which is now at $63+
Don't get too greedy though, a part of successful investing is knowing when to take some off the table.
Only if you try hollywood stock trading.
If you are reacting to news events, you will lose.
Buy and hold _never_ failed me. You just have to use some common sense when looking at the company and their current market capitalization. Some of my stocks were below buying level at some times, but if you dont realize it you dont lose.
There is _one_ stock that is down from my initial purchase 6 years ago, but it has a divident yield of about 8%, so nothing to complain in light of the current interest situation.
Stock prices have increasingly little to do with the quality of products produced by a tech company, and I'm surprised there are still people who don't get this. It's when companies start paying more attention to their stock price and short term gimmicks to elevate that their product quality typically falls.
While a lot of flashlights use Cree LEDs, that's only a small portion of the LED business. LEDs are used even more heavily in OEM applications (think automotive, fixed lighting, electronics), and there's quite a bit of competition. I would be a little more cautious with your outlook.