Wednesday, December 2, 2009

Call Volume Escalates as Cree, Inc. Extends String of New Highs (CREE)

A long time favorite, see links below. The stock is trading at $51, even. Here's the one year chart via Yahoo Finance:
Chart for Cree Inc. (CREE)

"A trend appears to be emerging"
(that dip in Dec. '08 bottomed at $12.57)
From Schaeffer's Research:

The shares of Cree, Inc. (CREE) extended their quest for new highs on Tuesday, attracting the attention of call traders in the process. The semiconductor concern yesterday saw nearly 7,000 calls cross the tape – more than tripling its average single-session volume of fewer than 1,400 calls, and almost quadrupling the number of CREE puts exchanged.

The equity's out-of-the-money December 55 call saw close to 2,500 contracts traded on open interest of fewer than 260, suggesting a healthy chunk of the activity consisted of initiations. Plus, 84% of the calls changed hands at the ask price, indicating they were likely purchased. However, the in-the-money 50 strike remains most popular in the front-month series, with more than 3,000 open call positions....MORE

Prior posts:

Jan. '08: Green energy's hottest stocks for 2008

May '08: LEDs: Venture capitalists see the light (CREE)

About ten years ago the best stockpicker I know told me he was looking at CREE. The pitch was "They have 'blue'". I didn't pay much attention, the Nasdaq was starting it's blow-off run, from around 1500 to 5048 in 18 months.
Cree went from $3 to $93....
June '08:
Performance Update: Ten Speculations for 2008
Oct. '08:
Analyst slams LED maker Cree
The stock closed yesterday at $22.78....

Jan. '09:
Lighting: Cree FY Q2 Revs, EPS Top Street Estimates
It was almost twelve years ago that the world's only communist stockbroker told me "They've got Blue". Then he said something about Nicarauga or something. I managed to avoid the period of the Securities Class Action only to do a '99-'01 up-the-mountain-chart-and-down-and-out. It appears they are doing just fine without me.
Jan. '09:
CREE: Trades Like a Bank Stock (but with earnings)

Aug. '09:
CREE Rocks Today; JASO, SOL, LDK Reports Make Tomorrow Key For Solars

Sep. '09:
Cree: IBM Rumor Resurfaces (Updated) CREE

Oct. '09:
Cree 1Q Profit Surges On Higher Rev, Margins; Sees Strong 2Q (CREE)