Use access key #2 to skip to page content.
  • S&P 500: 1,070.52
  • Change: 1.30%
$57.09 0.98 (1.75%)
2/9/2010 4:00 PM

Cree, Inc. (CREE)

CAPS Rating:
**

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

X

Rating a stock in CAPS consists of three components:

Your call - Will this stock outperform or underperform the S&P 500? Successful picks are measured in terms of whether or not you were correct and by how many percentage points.

Your time frame - A guideline for other members to see whether your thinking is short or long-term. Time frame is also used to calculate the stock rating, but is not used in the scoring of your pick.

Your pitch - Here's your chance to offer more detailed thoughts, analysis, concerns, or the rationale behind your call. The pitch is optional and may be added later.

Each time you rate a stock, CAPS updates the community intelligence for the company, which may or may not change its CAPS rating. For more information, visit the Help tab at the top of the page.

You aren't currently rating CREE

Add Stock to Watchlist

What the Community Thinks

Total Members

807 Outperforms
93 Underperforms
 

All-Stars

202 Outperforms
40 Underperforms
 

Wall Street

8 Outperforms
2 Underperforms
 

Members bullish on CREE are also bullish on:

Members bearish on CREE are also bearish on:

Ticker Tags

Mid Cap (610), Information Technology (963), Organic Light-Emitting Diodes (2), Cyclical (3415), LED's (4), Growth (1902), Aggressive Growth (860), Raleigh (4), North Carolina (13), Semiconductors and Semiconductor Equipment (177)
Suggest a tag

Cree, Inc. At A Glance

Current Price: $57.09
Last Trade Time: 2/9/2010 4:00 PM
Open: $0.00
Previous Close: $56.11
Daily Range: $56.50 - $57.85
52-Week Range: $17.88 - $63.95
Volume: 1,761,940
Market Cap: $6.05B
P/E Ratio: 77.93
Compare Our Special Broker Offers!

Stock Trends

CREE VS S&P 500 (SPY)

News & Discussion Boards

Top Bull Pitch

Recs

1

Cree, Inc. (CREE)

Avatar sante06 (65.37) Submitted: 1/19/10 7:20 PM

CREE crushed the EPS estimates today and profits more than doubled. Just wait until the rest of the world decides that LED lighting is more economical than CFL's or Incandescents. Management has also been executing flawlessly the past three quarters as utilization of factories has been as close to...More

Replies: 0 | Reply | Permalink

Top Bear Pitch

Recs

3

Cree, Inc. (CREE)

Avatar JakilaTheHun (99.95) Submitted: 1/20/10 10:12 AM

Great company in a great and growing industry, but getting very, very pricey; particularly in an commoditized industry that should have a glut of capacity by 2011. The risk here is that growth in LED lighting increases CREE's revenues so much that earnings skyrocket upwards over the next 5 years an...More

Replies: 2 | Reply | Permalink

CAPS Members

picks per page. CHANGE

Results 1 - 5 of 195 :   1 2 3 4 5 Next » Jump to page:

Show Pitch Replies

Recs

0

 (CREE)

Avatar nmartinov (33.09) Submitted: 1/27/10 10:53 AM : Underperform Start Price: $58.09 CREE Score: -0.12

Grow is slow, PE is high. Markets are in correction, here will be too. Sell. Target 40, stop 63

Report this Post Replies: 0 | Reply | Permalink

Recs

0

 (CREE)

Avatar StockWizard108 (55.75) Submitted: 1/21/10 9:58 AM : Outperform Start Price: $62.43 CREE Score: -2.55

Cree is a great stock because they receive great benefits and are in a growing market. I think LEDs are the future, and will be cheaper and more accessible in the future.

Report this Post Replies: 0 | Reply | Permalink

Recs

3

 (CREE)

Avatar JakilaTheHun (99.95) Submitted: 1/20/10 10:12 AM : Underperform Start Price: $62.37 CREE Score: 2.40

Great company in a great and growing industry, but getting very, very pricey; particularly in an commoditized industry that should have a glut of capacity by 2011. The risk here is that growth in LED lighting increases CREE's revenues so much that earnings skyrocket upwards over the next 5 years and drive the price even higher than the current $62 price point. But I'm betting against that. My view is that revenues will grow, but margins will shrink over the next 5 years.

Free cash flows are probably in the $1 - $2 per share range currently and Net Tangible Assets are around $14 per share. That gives Cree a Price/NTA ratio of about 4.5, which seems very high in a commoditized industry. I wouldn't want to pay more than 2.5 - 3.0 times NTAs in this kind of industry.

The highest analyst project for 2011 I see is around $1.72 per share. That gives CREE a forward PE of around 36. If you assume that CREE can earn $2 per share with a strong revenue growth rate, I'm still not sure that it's worth $63+ per share. Let's say $3 per share before earnings level off --- that probably gives them a valuation of about $60 at best.

I could definitely be wrong and I do believe Cree is a spectacular company in an absolutely vital and growing industry. Just think that $62+ is getting very expensive.

Report this Post Replies: 2 | Reply | Permalink

Recs

0

 (CREE)

Avatar 00100 (96.16) Submitted: 1/20/10 9:57 AM : Underperform Start Price: $63.32 CREE Score: 4.02

Downthumb. Low cash flow for valuation. 10% sales growth rate. 10.00 quick ratio. No debt. Overvalued. Needs to payout cash hoard with dividend.

Report this Post Replies: 0 | Reply | Permalink

Recs

1

 (CREE)

Avatar sante06 (65.37) Submitted: 1/19/10 7:20 PM : Outperform Start Price: $60.51 CREE Score: 0.53

CREE crushed the EPS estimates today and profits more than doubled. Just wait until the rest of the world decides that LED lighting is more economical than CFL's or Incandescents. Management has also been executing flawlessly the past three quarters as utilization of factories has been as close to 100% as possible. The aquisition of Chinese LED systems is just icing on the cake for this next revolution in lighting.

Report this Post Replies: 0 | Reply | Permalink

Results 1 - 5 of 195 :   1 2 3 4 5 Next » Jump to page:

Wall Street

Results 1 - 10 of 10  

picks per page. CHANGE

Top
Pick		Member NameMember RatingStart
Date		CallTime FrameStart
Price		Stock
Gain		S&P
Gain		ScorePitch
TrackJimCramer < 20 12/01/09 Outperform 3W $50.51+13.03%-3.67%+16.69
TrackJPMorgan 84.76 10/10/09 Outperform NS $37.50+52.24%+0.54%+51.70
TrackOppenheimer 81.36 09/19/08 Outperform NS $27.80+105.36%-13.55%+118.91
TrackCantorFitz 31.61 08/14/08 Outperform NS $22.47+154.07%-13.48%+167.56
TrackPiperJaff 85.79 12/13/07 Outperform NS $23.18+146.29%-24.26%+170.55
TrackBroadpoint.AmTech 76.97 06/01/07 Outperform NS $23.70+140.89%-26.47%+167.35
TrackCharlesPayn 63.30 04/27/07 Outperform 3M $19.65+190.53%-24.19%+214.73
TrackNCPI < 20 12/19/06 Underperform NS $16.85+238.81%-19.53%-258.34
TrackMatrix 90.36 11/20/06 Underperform NS $20.63+176.73%-18.75%-195.49
TrackTobinSmith < 20 10/06/06 Outperform 1Y $21.51+165.41%-15.68%+181.09

Results 1 - 10 of 10  

X

Beat this Stock

Clicking "Beat this Stock!" will bring you to a company with a higher rating than the one you're currently viewing.

Even though CAPS shows only one- to five-star rankings, behind the scenes, all companies in CAPS have a distinct numerical ranking. In other words, there is a No. 1 stock in CAPS and a worst-ranked stock in CAPS. When you arrive at the top-ranked stock, clicking "Beat this Stock!" will cause the page to refresh.

That is, until there is a new No. 1 stock!

These companies do not represent formal Motley Fool recommendations. Please do your own due diligence before investing. Fool on.

Featured Broker Partners

EQWEBD04 187ms