Friday, January 23, 2009

CREE: Trades Like a Bank Stock (but with earnings)

On Tuesday, after the close we posted "Lighting: Cree FY Q2 Revs, EPS Top Street Estimates". The next day the stock was up just shy of 14% and earth2tech put together a handy overview:
Cree’s Outlook a Bright Spot in Murky Economy
Cree shares rallied 14 percent to $18.76 Wednesday after a positive earnings report just as cleantech investors are sifting through numbers to separate the strong from the weak. Demand from consumer and automotive products may be down, but government spending in China and possibly the U.S. remains promising.

Cree said revenue in the quarter ended Dec. 28 was $148 million, up 5 percent from a year earlier. Most of the gains came from its core LED products. LED revenue rose 28 percent from a year earlier and 3 percent from the previous quarter. That was more than enough to offset areas that saw declines in revenue, such as high-power products and materials....

Yesterday the stock was down a percent-and-a-half, today it is up just under 8% on a down day. As I said, trades like BAC but with earnings!