This rec. came out on Sept. 9, the stock closed at $49.40 that day. We were sitting on it until the stock could go a whole day without trading under $50. That happened yesterday. A look at the chart shows why we aren't pounding the table, yet.
From Yahoo Finance:
The last stall at the 10-day EMA was a bit ominous as it makes the third time the line stopped a rally since the end of July. The 10-day is currently at $52.06
Cree: Wunderlich Securities equity analyst Theodore O'Neill reiterated a buy rating and $85 price target on shares of Cree (CREE), a maker of energy-efficient lighting products, on Sept. 9.Previously:
"We believe the recent pullback in the share price of [Cree] has presented an attractive entry point for building a position in the stock," O'Neill wrote in a note. He said the shares have come under increasing pressure from investor fears of a cyclical slowdown in the semiconductor industry and high inventory levels of flat-panel monitors and televisions that employ the company's light-emitting diodes (LEDs).
"[T]he percentage of LED-backlit LCD monitors and televisions is about 12 percent, by our estimates, and only a fraction of those use Cree LEDs," the analyst wrote. "If that business were to disappear, we estimate it would impact Cree's [earnings per share] by less than a dime."
The company reported EPS of $1.45 in fiscal 2010 (ended June).
"Brighter Prospects for Cree" Wunderlich Initiated at Buy (CREE)
The call was issued Tuesday. Yesterday the stock closed down for the day. Today it's up $1.49 at $61.73.
Ironically, this version is from Barron's 'Hot Research' column (sorry):
Cree (CREE: Nasdaq)
By Wunderlich Securities ($60.41, June 8, 2010)
WE ARE INITIATING COVERAGE of Cree (ticker: CREE) with a Buy rating and an $85 price target on the shares. The world of lighting is finally on the verge of being completely and utterly replaced by solid-state lights and Cree is leading the industry to make this happen....MUCH MORE