Thursday, January 13, 2011

LED Stocks Crushed on SemiLEDs Earnings (LEDS, AIXG, CREE, VECO, PHG, EFOI)

Cree is trading down $3.10 at $66.10. The stock has had trouble getting past $70.00.
LEDS is down 33.5% at $19.02
From Tickerspy:
Despite some positive analyst chatter, LED stocks are getting hammered today due in part to some disappointing earnings news from one member of the LED Stocks Index, which is trading lower by 6.1%.
The big offender in the Index today is recent IPO SemiLEDs (LEDS). In its first earnings report as a public company, Taiwan-based SemiLEDs said it earned 11 cents a share on revenue of $13 million, but added that it sees those numbers to declining in its fiscal second quarter to a profit of six to nine cents a share on revenue of $10.5-$12.5 million.

In a conference call with investors, SemiLEDs said it’s seeing pricing pressure it wasn’t seeing just a month ago and that the company lost a customer to an unidentified rival firm. Shares of SemiLEDs have plunged 33% on the news.

Other LED stocks are suffering as well. Aixtron SE (AIXG) was started as a “buy” in new coverage by Societe Generale, but the shares are down 2%. Deutsche Bank raised its price target on Cree (CREE) to $65 from $50, but Cree shares are lower by 4%. Veeco Instruments (VECO) is also down 4%.
The lone gainers in the Index are Philips Electronics (PHG) and Energy Focus (EFOI), up 3% and 4%, respectively.

Investors can track the LED Stocks Index for performance trends and a suite of other metrics at
Climateer Investing: What's Moving: SemiLEDS Corporation (LEDS)
UBS and JP Morgan Give Veeco Some Love (and why the sell-off was overdone) VECO; AIXG; CREE