6 thoughts on “CREE BLOG Live”

1. OT: I didn’t know where to post under CREE so I’ll say congrats on an awesome pick right now, right here. I have followed CREE since one of its secondary offerings end of ‘99. Your readers are in for a treat. Great work as always. Based on the current LED market race, how long do you see CREE being around before it is taken over? I just don’t see it blossoming all by its lonesome…

   Editor: I believe there’s a reasonable chance they could be taken out sometime in ’08. As I stated in the piece, GE might be a logical candidate. 

2. my son works for cree, and he said about a mo ago that they had started ramping up. i own cree and like it even without the buyout talk.

   Editor: Tongue in cheek -  I believe the company has a very bright future. 

3. One other component of the CREE technology is high output LED flashlights. I have a SureFire incandescent light that cost $100 and replacement bulbs are in the $12-15 range, plus it goes through a pair of high capacity lithium-ion batteries in about 80 minutes. In contrast, one can achieve a similar light output from a CREE with much longer lamp life, and somewhat longer battery life, all from a unit that can be obtained for 1/5 or less of the original cost. The other
   nice thing is that LEDs are a bit more tolerant of less-than-new batteries, and so can be used to drain them down to the last drop, where incandescents just fail to fire below a higher voltage floor.

   I think the home lighting part of their business will certainly be strong in time, but if they can bring professional-level portable lights to the masses, we may see much more volume there in shorter order. Just look at the rush of traditional flashlight companies to bring the LED “upgrades” to their lines. I think they are a bit
   behind, and may draw on companies like CREE to deliver working elements at volume.

   I’m sure you’ve run across this element of their business as well, but I wanted to hilight it as a fairly significant portion that holds interest to many people like myself who frequently see a need for high output light on demand simply for working on circuit boards, cars, or whatever needs seeing. Think of all the geeks, auto techs,
   construction pros and safety & security personnel who can now more easily have a primary and backup at hand with less cost and worry.

   Thanks for all your suggestions and analysis — I’ve been following you for a couple years and while I’ve lost plenty of times, it’s still exciting to see the wins here and there. So it goes in the OTC world

   Editor: Thanks for your contribution. I hadn’t looked too hard at the portable light component, but I am not an analyst- I just write a common sense newsletter. I hope you find it useful. 

4. “”10:33 am General Electric Isn’t Interested In Purchasing Cree -Source Dow Jones Newswires”"

   ummm

   Editor: Hmmm- you usually don’t get that lucky. 

5. yo now that GE doesnt want CREE what are your thoughts on this company now???

   Editor: Nothing has changed. I mentioned there was a possibility there could be a buy out, but that wasn’t the real reason to own the stock. I like the stock because they have the best LED lighting technology, and LED will eventually replace the incandescent light bulb. It’s transformational and disruptive technology. 

6. Why do you think that Cree will be bought out by GE? I think the founders of Cree are all-in for reasons other than money. I think that they actually want Cree to succeed on their own. With the acquisition of Cotco, they now have a market in Asia. Also, LED City is gaining more and more interest with cities worldwide. Cree has been successful so far, making over 100 million per quarter. What would be the reason that Cree would sell out? What does GE have to offer that Cree cannot get for themselves?

   Editor: Because GE has a habit of buying profitable companies in spaces they are outside of, but want to get in that have leading edge technology. However, I just mention it as a possibility. It is not the primary reason I own the stock. I own because I believe they will grow very dramatically as LED lighting because the technology of choice to replace the incandesent light bulb.